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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…

Unsupported Price Increases

In one of a series of reports on Medicare+Choice organizations’ use of the additional funding provided by the Benefits Improvement and Protection Act of 2000 (BIPA), the Department of Health and Human Services sought to "determine whether Humana (1) supported the $7.8 million of additional capitation payments and used the funds in a manner consistent with BIPA requirements and (2) supported the $6.6 million cost increase that was not related to the BIPA funding increase. Of the $7.8 million BIPA capitation payment increase in Humana’s revised proposal, $2.6 million was properly supported and was used in a manner consistent with BIPA requirements. However, the remaining $5.2 million was unsupported; therefore, we could not determine whether it was used in a manner consistent with BIPA requirements. Additionally, of the $6.6 million increase in direct medical care costs that was not related to the BIPA funding increase, $1.3 million was supported. The remaining $5.3 million was unsupported.”

Misconduct Type
Cost/Labor Mischarge
Enforcement Agency
Health and Human Services
Contracting Party
None
Court Type
N/A
Disposition
Investigative Finding
Date of Report
7/8/2005
Contractors Involved Penalty
Total
Humana $0
Further Information Released
HHS Inspector General Report 8/30/2006

Federal Contractor Misconduct Database