Molina pays $40M to settle alleged Medicaid violations in whistleblower lawsuit

Texas Attorney General Ken Paxton’s Healthcare Program Enforcement Division has secured a $40 million settlement from Molina Healthcare under the Texas Health Care Program Fraud Prevention Act.

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Molina serves members of the Medicaid STAR+PLUS program, which is designed to aid individuals who are disabled, blind or aged 65 and older. The company was accused of failing to assess beneficiaries on time and concealing its noncompliance from Texas.

The case originated from a whistleblower lawsuit under the THFPA’s qui tam provisions.

“This $40 million payment to Texas helps ensure that managed care organizations who contract with Texas Medicaid are held to the highest standards,” Mr. Paxton said in a March 7 news release. “I will continue to defend our health programs against fraud and take action against any bad actors who falsely believe that they can take advantage of our state’s health system and the Texans who depend on it.”

Molina did not respond to Becker’s request for comment. 

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