ANTHEM OWES $1.5 MILLION TO SETTLE OVERCHARGE ALLEGATIONS

Indiana-based Anthem Insurance Companies will pay the United States $1.5 million to settle allegations that the company overcharged the Federal Employee Health Benefits Program (FEHBP). The corporation has served as a contractor within the FEHBP.

The government alleges that Anthem included profit in the cost of certain services billed to the program by a company under common corporate control and improperly calculated the amount of drug rebates due the program. The allegations relate to the period from 1992 through 2002.

The settlement resolves a whistleblower suit brought against Anthem under the False Claims Act. Under the Act, private persons, known as “relators,” may bring suit on behalf of the United States alleging fraud against the government and, in an appropriate case, receive a share of the proceeds.

The Defense Criminal Investigative Service and Office of Personnel Management Inspector General investigated the matter.