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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…

Underpayment and Unfair Settlement of Substance Abuse Treatment Claims in California

The California Department of Insurance issued an order to show cause against Health Net claiming the company violated state and federal laws by improperly reimbursing substance abuse residential treatment providers in 2015 and 2016. The order alleges Health Net failed to pay inpatient and outpatient claims according to its policy, resulting in the “underpayment and unfair settlement of claims.” The order also alleges Health Net referred provider claim requests without proper investigation. The order proposes penalties of $5,000 for each non-willful violation and $10,000 for each willful violation.

Misconduct Type
Consumer Affairs
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Administrative
Disposition
Pending
Date of Order
7/25/2018
Contractors Involved Penalty
Total
Health Net, Inc. $0
Further Information Released
Order to Show Cause 7/25/2018

Federal Contractor Misconduct Database