CENTENE CORP

Centene Corporation has paid over $1 billion in settlements with at least 20 states since 2021 over allegations that its pharmacy benefit manager subsidiaries overcharged state Medicaid programs for prescription drug services. The pattern originated when Ohio Attorney General Dave Yost sued the company in March 2021, accusing Centene subsidiary Buckeye Health Plan of working through two Centene-owned pharmacy middlemen to overcharge taxpayers, resulting in an $88.3 million settlement.

Major subsequent settlements include California ($215 million), Texas ($165.6 million), Indiana ($66.5 million), and South Carolina ($25 million). Centene created a $1.25 billion reserve to cover these settlements, as disclosed in SEC filings. In February 2025, the DOJ separately reached an $11 million settlement with Centene subsidiary Health Net Federal Services for False Claims Act violations related to cybersecurity deficiencies in the TRICARE military health program. The scale of the Medicaid fraud pattern — spanning more than half of U.S. states, with each investigation independently uncovering the same overcharging practices — demonstrates a systemic business model rather than isolated compliance failures.