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Health plan prepared to pay to resolve Medicare, Medi-Cal fraud probes
California Watch

A Long Beach-based health plan seeking new contracts to serve 54,000 Southern California low-income seniors has set aside $125 million to resolve claims by state and federal authorities that it overbilled Medi-Cal and Medicare.

In applications submitted in February to California’s Medi-Cal agency, the SCAN Health Plan detailed the course of civil and criminal investigations by the California attorney general’s office, saying they could lead to “substantial financial payments.” Federal authorities from the Health and Human Services and Justice departments also are investigating, the reports say.

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