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Sunday, May 3, 2026

Attorney General Bonta Announces $215 Million Settlement Against ... - California Department of Justice

OAKLAND – California Attorney General Rob Bonta today announced a settlement of more than $215 million against the Centene Corporation over allegations that the national healthcare company overcharged California’s Medi-Cal program by falsely reporting higher prescription drug costs incurred by two of its managed care plans. In doing so, Centene is alleged to have violated the California False Claims Act. California Health & Wellness and Health Net, the two managed care plans, provide healthcare services to Medi-Cal beneficiaries in over 20 California counties. More than 80% of Medi-Cal beneficiaries receive care from a managed care plan contracted with Medi-Cal.

"Medi-Cal is a lifeline that provides access to free or affordable healthcare services for millions of Californians,” said Attorney General Bonta. “When companies overcharge the Medi-Cal system, it drains valuable resources from the people who rely on this care. Today’s settlement is a win — it brings resources directly back to our state. At the California Department of Justice, we will continue using every tool we have to fight for California’s vulnerable communities.”

California Department of Justice (DOJ) investigators found that between January 2017 and December 2018, California Health & Wellness and Health Net reported inflated figures for the costs they incurred in providing prescription drugs to patients. Centene leveraged advantages in its pharmacy benefit manager (PBM) contracts to save its managed...



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