Justice Department Sues Three Medicare Advantage Insurers and Brokerages Alleging Illegal Kickback Scheme

The Justice Department has filed a lawsuit against three major Medicare Advantage insurers and three leading insurance brokerages, alleging an illegal kickback scheme. The lawsuit claims the insurers and brokerages engaged in a coordinated effort involving illegal kickbacks. According to the Justice Department, the scheme allegedly incentivized the brokerages to steer beneficiaries towards specific Medicare Advantage plans offered by these insurers. The Justice Department claims this arrangement violated the Anti-Kickback Statute, which prohibits offering or receiving remuneration in exchange for referring individuals for services covered by federal healthcare programs. The lawsuit seeks to recover damages and penalties from all parties involved.

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Date: May 1, 2025

Author

Mark Chiang