Becker's Healthcare September 18, 2025
The Department of Justice has filed a False Claims Act lawsuit against Inland Empire Health Plan (IEHP), alleging the Rancho Cucamonga, Calif.-based insurer misused federal Medicaid expansion funds and submitted false statements to the state.
The Sept. 17 complaint was filed in the Central District of California and accuses IEHP of knowingly retaining overpayments and disguising improper spending as legitimate medical expenses. IEHP contracts with the state to provide Medi-Cal coverage in Riverside and San Bernardino counties. Under that arrangement, the plan was required to spend at least 85% of Medicaid expansion funds on allowed medical expenses or return the difference to the state, which would then repay the federal government.
According to the lawsuit, IEHP instead developed schemes to...
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