The Centers for Medicare & Medicaid Services said the cancelled payments are linked to people enrolled twice in the system, as well as those found to be deceased. Determinations are subject to a 30-day appeal of any errors made during the purge. 

Humana, the parent company of CenterWell, revealed the deal on Tuesday. Per the terms, BlackRock will take over the majority ownership of 150 clinics, with promises to make new investments aimed at promoting growth.

The company does not admit to wrongdoing, but was accused by the U.S. Department of Justice in 2024 of unlawful prescriptions for controlled substances, going on to bill Medicare and other government health programs.

Brett Blackman, 43, of Kansas was convicted by a jury in April of healthcare fraud, stemming from an extensive conspiracy to issue bogus prescriptions for unnecessary medical devices. 

The U.S. Department of Justice said Le Thu, an emergency medicine physician, conspired with telehealth companies to fill prescription orders despite never having examined the patients herself.

The “Lower Premiums, Faster Payments Act” from Rep. Frank Pallone (D-NJ) would eliminate the independent dispute process completely. Its proposal comes after recent indication that the No Surprises Act lacks teeth.

The state is accusing the insurer of colluding with the broader Blue Cross Blue Shield network to stifle competition and control prices. BCBSM denies the allegations.