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Medicaid insurer to pay $14 million settlement to MassHealth

BOSTON — Centene Corp., the nation's largest Medicaid managed care insurer, will pay more than $14 million to MassHealth to resolve allegations that it overcharged the state agency millions of dollars for pharmacy benefits and services provided by subsidiary companies, according to the state Attorney General’s Office.

A review of the company's pharmacy benefits manager in Massachusetts discovered irregularities in the pricing and reporting of pharmacy benefits and services to MassHealth by Centene’s subsidiary companies. Healey's office alleged that the company and its benefits manager, Envolve, failed to disclose or pass on some retail discount fees to MassHealth, which inflated fees and drug costs reported to the commonwealth.

 “We are pleased to secure these funds to help control Medicaid costs and ensure that state resources are directed to the best possible uses in our health care system,” Attorney General Maura Healey said in a news release.

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