California Insurance Commissioner Ricardo Lara has introduced that The Pill Club Holdings, previously generally known as Hey Flavor, Inc., has paid $3.2 million after an investigation by the California Department of Insurance alleged that the corporate had violated the California Insurance Frauds Prevention Act.
Investigators alleged that The Pill Club violated the act by submitting false claims to insurance coverage corporations for telehealth visits and prescribing and allotting FC2 feminine condoms that weren’t medically vital.
The Pill Club is a web based firm that provides hormonal contraception, emergency contraceptives, and feminine condoms to sufferers by way of telehealth appointments. Patients would fill out a web based questionnaire, which might then be reviewed by nurse practitioners employed by The Pill Club. The nurse practitioners would prescribe hormonal contraception and/or FC2 feminine condoms based mostly on the sufferers’ solutions.
The California Department of Insurance alleged that the corporate falsely billed for the nurse practitioners’ evaluate of the one questionnaires by claiming the critiques had been in-person affected person visits lasting between 16 and half-hour.
The Pill Club additionally allegedly submitted false claims to well being insurers for reimbursement for FC2 feminine condoms that sufferers didn’t need and which weren’t medically vital. The firm distributed the FC2 feminine condoms from its personal in-house pharmacies based mostly in California and Texas.
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“Fraudulent insurance claims and dispensing products and medications that are unwanted and not medically necessary only serves to increase costs for consumers and on the entire insurance marketplace,” Lara mentioned. “Protecting reproductive rights is vital, and this settlement protects patients and the marketplace.”
The California Department of Insurance started investigating The Pill Club after receiving a grievance that the corporate had violated state regulation and had a sample of submitting fraudulent insurance coverage claims.
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