From the U.S. Department of Justice, February 18, 2025
Note: View the settlement agreement here.
Health Net Federal Services Inc. (HNFS) of Rancho Cordova, California and its corporate parent, St. Louis-based Centene Corporation, have agreed to pay $11,253,400 to resolve claims that HNFS falsely certified compliance with cybersecurity requirements in a contract with the U.S. Department of Defense (DoD) to administer the Defense Health Agency’s (DHA) TRICARE health benefits program for servicemembers and their families. In 2016, Centene acquired all of the issued and outstanding shares of Health Net Inc., HNFS’s corporate parent, and assumed the liabilities of HNFS.
“Companies that hold sensitive government information, including sensitive information of the nation’s servicemembers and their families, must meet their contractual obligations to protect it,” said Acting Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “We will continue to pursue knowing violations of cybersecurity requirements by federal contractors and grantees to protect Americans’ privacy and economic and national security.”
“Safeguarding sensitive government information, particularly when it relates to the health and well-being of millions of service members and their families, is of paramount importance,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “When HNFS failed to uphold its cybersecurity obligations, it didn’t just...
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