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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Health Net, Inc.

30 instances of misconduct since 1995 | $701.4M in penalties

Health Net, Inc. is among the nation’s largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company’s HMO, POS, insured PPO and government contracts subsidiaries provide health benefits to approximately 6.6 million individuals in 27 states and the District of Columbia through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net’s behavioral health subsidiary, MHN, provides mental health benefits to approximately 7.3 million individuals in all 50 states. The company’s subsidiaries also offer managed health care products related to prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.

Correspondence Date
Letter to Health Net 11/17/2006
Second Letter to Health Net 6/3/2008
Response from Health Net 7/19/2008
FY Rank Contract Awards
2016 #17 $3,126.2M
2015 #15 $3,020.4M
2014 #17 $3,225.8M
2013 #18 $3,083.0M
2012 #18 $3,141.8M
2011 #20 $3,145.3M

30 Instances of Misconduct since 1995

6 additional instances of misconduct pending resolution.

Date Instance Penalty
Total  
7/24/2017 Discrimination Against Transgender Enrollees
Health Net, Inc.
$200,000
4/27/2017 U.S. et al. ex rel. Robinson v. Indiana University Health et al. (False Claims, Kickbacks)
Health Net, Inc.
$9,000,000
8/16/2016 Illegal Restriction of Whistleblowing
Health Net, Inc.
$340,000
6/30/2016 Sovereign Health v. Health Net (Unlawful Denial of Reimbursement for Behavioral Treatment Services)
Health Net, Inc.
Pending
2/29/2016 Medicare Advantage Violations
Health Net, Inc.
$458,250
7/13/2015 Providing Inaccurate Information to Arizona Medicare Customers
Health Net, Inc.
$349,075
7/7/2015 Fox-Quamme, et al. v. Health Net (Oregon Naturopath Lawsuit)
Health Net, Inc.
Pending
12/19/2014 Lehman et al. v. Health Net of California (Unfair and Deceptive Business Practices)
Health Net, Inc.
Pending
10/24/2013 Providing Inaccurate Medicare Benefit and Coverage Information
Health Net, Inc.
$86,530
9/12/2012 Mendoza v. Health Net of California (Denial of Coverage)
Health Net, Inc.
Pending
8/20/2012 Review of Enterprise Technology Solutions Compliance with Federal Small Business Program Contracting Rules
Health Net, Inc.
$0
5/8/2012 Timothy’s Law Violations
Health Net, Inc.
$260,680
10/27/2011 U.S. ex rel. Poehling v. UnitedHealth Group, et al. (Medicare Advantage False Claims)
Health Net, Inc., Humana, UnitedHealth Group
Pending
5/23/2011 Underpaying California Hospitals for Emergency Services
Health Net, Inc.
Pending
1/14/2011 Security Breach Lawsuit (Vermont)
Health Net, Inc.
$55,000
11/29/2010 Improper Payment of Provider Claims
Health Net, Inc.
$750,000
11/19/2010 Medicare Suspension
Health Net, Inc.
$0
10/13/2010 New York State Insurance Law Violations
Health Net, Inc.
$1,900,000
2/10/2010 Arizona Insurance Law Violations
Health Net, Inc.
$236,500
1/13/2010 Connecticut Security Breach Lawsuit
Health Net, Inc.
$650,000
5/22/2009 Policy Rescission (California Hospital Association Lawsuit)
Health Net, Inc.
$1,950,000
9/12/2008 Claims Handling and Rescission Practices
Health Net, Inc.
$25,000,000
8/27/2008 Underpaying New Jersey Subscriber Claims
Health Net, Inc.
$41,800,000
2/21/2008 Bates v. Health Net (Policy Rescission)
Health Net, Inc.
$9,368,117
2/20/2008 Policy Rescission (L.A. City Attorney Lawsuit)
Health Net, Inc.
$8,800,000
11/16/2007 Policy Rescission Program Investigation
Health Net, Inc.
$1,000,000
11/1/2007 McCoy/Wachtel/Scharfman ERISA Lawsuits
Health Net, Inc.
$255,000,000
11/4/2005 Breach of Fiduciary Duty, Fraud, Unfair or Deceptive Acts or Practices and Conspiracy
Health Net, Inc.
$108,700,000
10/19/2005 Illegally Collecting Money from Enrollees’ Personal Injury Awards
Health Net, Inc.
$166,671
5/3/2005 Shane v. Humana, et. al. (Underpayment to Providers for Services)
Health Net, Inc.
$60,000,000
2/11/2005 Claim Underpayments
Health Net, Inc.
$28,500,000
1/13/2005 Failing to Correctly and Accurately Pay Claims to Health Care Providers
Health Net, Inc.
$250,000
4/13/2004 Using an Outdated Schedule for Reimbursements
Health Net, Inc.
$5,490,000
10/23/2003 Breach of Stock Purchase Agreement
Health Net, Inc.
$137,000,000
1/24/2003 Withholding Mandated Benefits and Improper Reimbursement
Health Net, Inc.
$874,000
5/1/1998 Monacelli v. Gem Insurance Company, et al. (Bad Faith and Misrepresentation)
Health Net, Inc.
$3,233,000

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