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Tuesday, June 23, 2026

Nonprofit Health Care Provider to Pay $750,000 to Resolve False Claims Involving Misbranded Contraceptives in Santa Cruz and Monterey Counties - Sierra Sun Times

total of $750,000 to resolve allegations that it submitted false claims for payment to the Medicaid program in connection with its purchase and administration of misbranded contraceptives.

Image by Ray Shrewsberry • Ray_Shrewsberry from Pixabay

Among the services it provides, Salud offers contraceptive care, including etonogestrel marketed under the brand name Nexplanon, to Medicaid beneficiaries. Nexplanon is a thin rod that is inserted under the skin of a patient’s upper arm that, once implanted, works to prevent pregnancy. The United States alleged that between May 17, 2017, and September 11, 2020, Salud purchased misbranded Nexplanon from an unlicensed wholesaler and administered the misbranded Nexplanon to Medicaid patients. According to the United States, Salud knowingly submitted false claims for payment to Medicaid by using incorrect National Drug Code numbers, unique drug identifiers used by the FDA for reporting and patient safety purposes, for the misbranded Nexplanon and for its administration.

“Patient safety must be at the forefront of medical decision-making,” said United States Attorney Craig H. Missakian. “Using misbranded drugs jeopardizes public health and constitutes a serious False Claims Act violation. We will continue to hold violators accountable.”

“It’s clearly dangerous and unethical for health care providers to administer misbranded drugs obtained from unlicensed sources to their patients,” said Special Agent in Charge Robb R. Breeden of the...



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