The company admitted no wrongdoing but said it has improved billing and taken steps to make sure customers receive only the products they request.
| Kaiser Health News
The Pill Club agreed to pay $15 million to the state Department of Justice and $3.3 million to the Department of Insurance. California officials said they believe it’s the first such enforcement action against the company. The Pill Club formed in 2016 as an online-only pharmacy distributing birth control pills and other contraceptives.
The whistleblowers and their attorneys will receive nearly $4.6 million from the two state settlements. Justice Department officials said the settlement will cover all the losses to Medi-Cal, California’s Medicaid program. But the company’s highest profits came from the female condoms, the Department of Justice said in sharing details from its three-year investigation exclusively with KHN. Not only do they bring a high reimbursement rate, but the company also billed Medi-Cal more than 250% of the retail price on average, investigators found.
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