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Attorney General Bonta Announces $15 Million Settlement Against Silicon Valley Startup Online Pharmacy for Medi-Cal Fraud Scheme

OAKLAND — California Attorney General Rob Bonta today announced a $15 million settlement against The Pill Club, a Silicon Valley startup operating an online pharmacy for birth control and contraceptives. The settlement resolves allegations that the company unlawfully billed California’s Medicaid program, Medi-Cal, millions of dollars in public funds in an allegedly fraudulent scheme that exploited the Affordable Care Act's (ACA) essential coverage mandate, which ensures that insurance providers, including Medi-Cal, cover contraception. The investigation by the California Department of Justice (DOJ) found that The Pill Club defrauded Medi-Cal of millions of dollars by dispensing and reimbursing for costly products that customers had not asked for, and submitting reimbursements for ineligible services and prescriptions.

Read more on oag.ca.gov

Action Details

  • Date:February 7, 2023
  • Agency:California Attorney General
  • Enforcement Types:
    • State Enforcement Agencies