x
Breaking News
More () »

Centene Corp. reaches $165.6M settlement with Texas over pharmacy benefit practices

As part of the settlement, Centene made no admission of liability and maintained that its business practices were lawful.
Credit: SLBJ
Centene's headquarters in Clayton.

ST. LOUIS — Centene Corp. (NYSE: CNC) will pay $165.6 million to Texas to resolve an investigation into whether the corporation’s business practices violated the state’s Medicaid fraud prevention law.

As part of the settlement, Centene made no admission of liability and maintained that its business practices were lawful.

The 24-page Texas agreement is the latest in which Centene has agreed to pay millions of dollars to resolve claims that its subsidiaries overcharged state Medicaid programs for pharmacy benefit management services. In the case of Texas, Paul Hurst last February filed an original petition as a qui tam action. In that type of litigation, a relator files a lawsuit on the government’s behalf. If successful, the relator bringing the suit receives a share of the award.

“Protecting taxpayer funds and the financial integrity of the Texas Medicaid Program is a top priority for my office,” Attorney General Ken Paxton said in a statement Monday. “The results we achieved in this case send a clear message to providers that Texas expects transparency from its Medicaid partners as required by Texas law.”

The settlement – which was reached in July and announced on Monday by Paxton – says the state of Texas, Hurst and their respective counsel will determine the allocation of the $165.6 million. Centene agreed to make the payment in two installments – on Aug. 15 and on that same date next year. 

Click here for the full story from the St. Louis Business Journal.

RELATED: After pandemic delays, construction set to begin on Clayton hotel (Photos)

RELATED: Hospital in south city being sold

Paid Advertisement

Before You Leave, Check This Out