The Centers for Medicare and Medicaid Services (CMS) fined Health Net $458,250 for Medicare Advantage-Prescription Drug violations discovered during an audit conducted from October 5, 2015 through October 19, 2015. CMS found that Health Net failed to comply with Medicare requirements related to Part D formulary and benefit administration and Part C and D organization/coverage determinations, appeals, and grievances. CMS determined that Health Net’s “systemic” failures in these areas resulted in enrollees experiencing inappropriate delays or denials in receiving covered benefits and increased out-of-pocket costs.