Centene To Pay $143.3M To Settle Ohio, Mississippi Suit Over Double-Billing On Medicaid Drugs

Centene Corporation CNC has agreed to pay Ohio $88.3 million to settle a lawsuit accusing the company of making off with millions of dollars meant to help the state's most vulnerable residents.
The company also has reached a separate $55 million settlement with Mississippi. The company does not admit fault in any of the deals centered on its pharmacy benefit manager subsidiary, Envolve Pharmacy Solutions.
The practices described in the settlement focus on the structure and processes of Envolve, primarily during 2017 and 2018. In the settlements, the company denies any liability for these practices.
Going forward, Envolve will operate as an administrative service provider, not a pharmacy benefits manager, on behalf of Centene's local health plans to further simplify our pharmacy operations.
"These agreements reflect the significance we place on addressing their concerns and our ongoing commitment to making the delivery of healthcare local, simple and transparent. Importantly, putting these issues behind us allows us to continue our relentless focus on delivering high-quality outcomes to our members."
Centene has set aside another $1.1 billion for the other states, many of whom are represented by the same law firm as Ohio, Liston & Deas of Mississippi.
Price Action: CNC shares are down 2.46% at $69.07 during the market session on the last check Monday.