The federal government is taking legal action against Inland Empire Health Plan (IEHP), one of California’s largest Medi-Cal providers, accusing the insurer of misusing public health care dollars.
In a lawsuit filed under the False Claims Act, the U.S. Department of Justice alleges IEHP knowingly retained millions in Medi-Cal overpayments connected to the state’s Medicaid expansion. Prosecutors say the health plan created sham incentive programs and disguised improper payments, diverting money that was supposed to support patient care in Riverside and San Bernardino counties.
The complaint claims IEHP’s practices violated federal law by submitting false statements and failing to return overpayments, which prosecutors argue resulted in significant financial harm to taxpayers. Medi-Cal, California’s Medicaid program, serves millions of low-income residents, and officials stress that improper use of these funds undermines the system’s integrity.
At this stage, the allegations remain unproven. Federal officials emphasized that the lawsuit represents claims only, and no court has determined liability against IEHP. The health plan has not publicly responded to the complaint.
The Department of Health and Human Services is urging anyone with knowledge of suspected health care fraud to come forward. Reports can be made directly to the agency’s Office of Inspector General.
The case highlights ongoing federal scrutiny of Medi-Cal providers, as regulators work to protect public funds...
The United States Department of Justice has filed a claim alleging that Inland Empire Health Plan (IEHP) violated the False Claims Act. The filing, announced on September 17, 2025, outlines accusa...