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DOJ sues the nation’s largest health insurers' alleging ‘unlawful kickbacks’

  • The U.S. Department of Justice filed a lawsuit on Thursday accusing major health insurers and brokers of paying illegal kickbacks from 2016 to 2021 to boost Medicare Advantage enrollment.
  • The suit followed a whistleblower complaint alleging that insurers Aetna and Humana conspired with brokers to steer beneficiaries toward plans offering the highest kickbacks regardless of their needs.
  • The complaint names Aetna, Elevance Health, Humana, eHealth, GoHealth, and SelectQuote, and alleges these companies paid brokers hundreds of millions while pressuring them to enroll fewer disabled beneficiaries.
  • Federal officials warned that businesses held responsible may be required to pay damages amounting to three times the government’s losses, along with additional civil fines; Deputy Assistant Attorney General Granston emphasized that healthcare firms engaging in illegal activities will be held accountable.
  • The lawsuit signals intensified enforcement against Medicare Advantage fraud and aims to protect vulnerable beneficiaries while potentially leading to significant financial penalties.
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healthcaredive.com broke the news in on Thursday, May 1, 2025.
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