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.
Action Details
- Date:February 7, 2023
- Agency:California Attorney General
-
Enforcement Types:
- State Enforcement Agencies