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Indiana AG reaches $66.5M settlement with Centene over pharmaceutical costs

The state alleges Centene Corp. overcharged Indiana's Medicaid program for pharmaceutical costs while providing pharmacy services.
Credit: AP
FILE - Pharmaceuticals are seen in North Andover, Mass., June 15, 2018. (AP Photo/Elise Amendola, File)

INDIANAPOLIS — Indiana's attorney general reached a multi-million dollar settlement with a healthcare services company for allegedly overcharging the state's Medicaid program.

Attorney General Todd Rokita announced the $66.5 million settlement with Centene Corp., which was accused of overcharging Indiana's Medicaid program for pharmaceutical costs while providing pharmacy services.

The state alleges that Centene "failed to disclose true pharmacy benefits and services costs." The attorney general claims the company inflated dispensing fees, which brought an added cost to the state's Medicaid program.

“Companies must be held accountable for their actions,” Rokita said in a release. “On Hoosiers’ behalf, my team and I are committed to making sure that happens.”

Through the settlement, Centene did not admit liability for the allegations and maintains it was conducting lawful business practices. At least 17 other states have also investigated Centene's charging practices, the attorney general's office said. 

Centene is required to pay the full amount of the settlement in two installments over 12 months.

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