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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Health Net, Inc.

Shane v. Humana, et. al. (Underpayment to Providers for Services)

Date: 05/03/2005 (Date of Settlement)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Non-Governmental

Contracting Party: Non-Governmental

Court Type: Civil

Amount: $60,000,000

Disposition: Settlement

Synopsis: On May 3, 2005, Health Net entered into an agreement settling the case Shane v. Humana, et. al. This action alleged that Health Net, among other defendants, "systematically underpaid providers for medical services to members, have delayed payments to providers, imposed unfair contracting terms on providers, and negotiated capitation payments inadequate to cover the costs of the health care services provided." As part of this settlement agreement, Health Net will pay $40 million to a general settlement fund and over $20 million for the plaintiffs' legal fees.