Medi-Cal Fraud Settlements Net $68 Million

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  • California AG Rob Bonta, in partnership with the DOJ, settled with four health care providers to resolve allegations that they violated state and federal False Claims Acts through the submission of fraudulent claims to Medi-Cal, California’s Medicaid program.
  • According to AG Bonta, the allegedly fraudulent submissions were part of a scheme to wrongfully retain federal funding earmarked for Medi-Cal’s Adult Expansion, a program under the Affordable Care Act covering previously uninsured adults without dependent children who are at or near the poverty level.
  • Under the terms of their settlements, Sansum Clinic will pay $4.5 million to the U.S. and $500,000 to California; Cottage Health System will pay $9 million to the U.S. and $1 million to California; Community Health Centers of the Central Coast will pay $3.15 million to the U.S. and $350,000 to California; and Santa Barbara San Luis Obispo Regional Health Authority d/b/a CenCal Health will pay $49.5 million to the U.S.
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