California Health System Pays $5M for Alleged Medicaid False Claims

Lompoc Valley Medical Center, a California healthcare system that operates multiple providers including a hospital and several clinics, has agreed to pay $5 million to resolve allegations that it violated the False Claims Act and the California False Claims Act by submitting false claims to Medi-Cal, the state’s Medicaid program.

The alleged false claims were related to Medicaid Adult Expansion under the Affordable Care Act, according to the Department of Justice.

Beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “adult expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program, Healthcare Finance reports. Read more.

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