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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…

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

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.

Misconduct Type
Cost/Labor Mischarge
Enforcement Agency
Non-Governmental
Contracting Party
Non-Governmental
Court Type
Civil
Disposition
Settlement
Date of Settlement
5/3/2005
Contractors Involved Penalty
Total
Health Net, Inc. $60,000,000
Further Information Released
SEC 10-K (p. 38 of 160) 10/6/2006

Federal Contractor Misconduct Database