STAT+: Justice Department sues Medicare Advantage insurers and brokers, alleging kickbacks
The Justice Department has sued three of the largest Medicare Advantage insurers and three dominant insurance brokerages, alleging a kickbacks scheme.
The Department of Justice has sued three of the largest Medicare Advantage insurers and three dominant insurance brokerages, alleging a scheme in which the health insurers bribed the brokers to steer older adults into their policies.
The lawsuit targets CVS Health’s Aetna, Elevance Health’s Anthem, and Humana, which together cover nearly 40% of the Medicare Advantage market. The brokers named in the lawsuit are eHealth, GoHealth, and SelectQuote.
The lawsuit, initiated in 2021 by a whistleblower who used to work at eHealth, alleges Aetna, Anthem, and Humana paid “hundreds of millions of dollars” in kickbacks to the brokerage companies between 2016 and 2021. In exchange for the money, the Justice Department says, eHealth, GoHealth, and SelectQuote only directed people into those insurers’ Medicare Advantage plans, regardless of whether they were the best options for someone.
