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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Underpaying New Jersey Subscriber Claims

Health Net of New Jersey paid $26 million in unpaid claims and interest, $2 million in examination fees and a $13 million fine for allegedly underpaying 88,000 former and current New Jersey members for out-of-network medical claims between 1996 and 2006. The payments resulted from a 21-month state investigation into Health Net and its predecessors, First Option Health Plan of New Jersey and Physicians Health Services of New Jersey. As part of an earlier investigation, Health Net paid more than $800,000 in restitution to more than 4,700 members for underpayments occurring between July 2001 and October 2002.

Misconduct Type
Cost/Labor Mischarge
Enforcement Agency
State/Local
Contracting Party
Non-Governmental
Court Type
Administrative
Disposition
Restitution
Date of Announcement
8/27/2008
Contractors Involved Penalty
Total
Health Net, Inc. $41,800,000
Further Information Released
NJDOBI Press Release 11/4/2008

Federal Contractor Misconduct Database