Healthcare firm Centene Corp. (CNC) announced Monday that it has reached no-fault agreements with the Attorneys General of Ohio and Mississippi to resolve claims made by the states related to services provided by Envolve Pharmacy Solutions, Inc., its pharmacy benefits manager or PBM subsidiary.
Under the terms of these agreements, Centene will pay $88 million to Ohio and $55 million to Mississippi. The practices described in the settlement focus on the structure and processes of Envolve, primarily during 2017 and 2018.
In the settlements, the Company denies any liability for these practices. As a result of the settlement, the Ohio Attorney General's litigation against the Company will be dismissed.
Going forward, Envolve will operate as an administrative service provider, not a PBM, on behalf of Centene's local health plans to further simplify our pharmacy operations.
Additionally, the Company is in discussions with a plaintiff's group led by the law firms of Liston & Deas and Cohen & Milstein in an effort to bring final resolution to these concerns in other affected states. Consistent with those discussions, Centene has recorded a reserve estimate of $1.1 billion related to this issue, exclusive of the above settlements.
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