Body: OAKLAND, Calif. — Insurance Commissioner Ricardo Lara today announced The Pill Club Holdings, Inc. (dba The Pill Club), formerly known as Hey Favor, Inc., paid $3.2 million after a California Department of Insurance investigation alleged it violated the California Insurance Frauds Prevention Act by submitting false claims to insurance companies for reimbursement for telehealth visits and prescribing and dispensing FC2 female condoms that were not medically necessary.
The Pill Club is an online health company that offers hormonal birth control, emergency contraceptives, and female condoms to patients via asynchronous and synchronous telehealth appointments. Patients fill out an online questionnaire. Nurse practitioners employed by The Pill Club would review the online questionnaires and prescribe hormonal birth control and/or FC2 female condoms based on a patient’s answers. The Pill Club allegedly falsely billed for the nurse practitioners’ review of the online questionnaires by claiming that the review was an in-person patient visit and that the visit lasted 16-30 minutes.
Read the entire press release. California Department of Insurance, February 7, 2023