HHS Orders California Insurer to Pay Back $224k in Overbilling

The HHS Office of Inspector General has reported PacifiCare of California may have overbilled Medicare by more than $424 million, claiming the health insurer billed codes and labeled patients with more serious illnesses than medical records indicated.

Advertisement

According to the report, 45 out of 100 PacifiCare Medicare Advantage cases analyzed from 2007 billed the federal insurance program for treatment patients with serious conditions like cancer that conflicted with medical records. Medicare pays a higher rate to patients with more serious conditions.

HHS ordered UnitedHealth, which owns PacifiCare, to pay back the $224,388 it received from the 45 faulty billing codes. If the sample rate of overbilling was true for the 188,000 PacifiCare patients that year, the OIG estimated the overpayments would have totaled $424 million, although UnitedHealth claimed the sample size is too small to be applied to so many patients.

More Articles on PacifiCare:

6 Healthcare Industry Leaders to Know
California Fines Largest Insurers for Underpayments to Hospitals, Physician
California Insurer PacifiCare Faces $9.9B in Fines From Regulators

Advertisement

Next Up in Legal & Regulatory Issues

  • Scottsdale, Ariz.-based HonorHealth wrapped its acquisition of 11 Evernorth Care Group locations Jan. 2. Evernorth is a subsidiary of The…

  • Four hospital mergers and affiliations took effect Jan. 1, marking a busy start to 2026 for healthcare consolidation. Here are…

Advertisement

Comments are closed.