Largest Medi-Cal Settlement in California’s History

Kamala D. Harris

Attorney General Kamala D. Harris has  announced a $323.67 million settlement with a Los Angeles-based health maintenance organization  over excess Medi-Cal and Medicare payments. The settlement with SCAN Health Plan, Senior Care Action Network, and Scan Group (collectively known as SCAN), which provides health care and support services in Southern California to the elderly and disabled, constitutes the largest Medi-Cal recovery in the state’s history. “Californians have lost millions of dollars that should have been going toward the health care of our most vulnerable citizens,” said  Harris. “This settlement will bring a significant amount of those funds back to the state when it is dearly needed, and I commend all of those involved in this action.” The federal government will be receiving $3.82 million for the Medicare portion of the settlement. For the Medi-Cal portion of the settlement, $319.85 million will be split between the federal government and California, with the federal government receiving $129.38 million and the state $190.47 million. The settlement resolves the state’s allegations that SCAN failed to provide contractually required financial information to the Department of Health Care Services (DHCS), thereby impairing the department from revising capitation rates for SCAN. “This settlement is a victory for the Medi-Cal beneficiaries we serve,” said DHCS Director Toby Douglas. “Using the scarce resources available in the most efficient way possible is a top priority for the state. We will continue our ongoing efforts to strengthen programs that protect the integrity of Medi-Cal,” Douglas said.
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