The Justice Department accused three of the nation’s largest health insurers of paying hundreds of millions of dollars in kickbacks to brokers in exchange for steering patients into the insurers’ Medicare Advantage plans.
In a lawsuit filed in Boston federal court, the DOJ alleged that CVS Health’s Aetna, Elevance Health and Humana engaged in a vast kickback scheme with insurance brokers eHealth, GoHealth and SelectQuote from 2016 to 2021.
Medicare Advantage plans are offered by private insurers who are paid a set rate by the US government to manage healthcare for older people looking for extra benefits not covered in regular Medicare coverage.
Many Medicare beneficiaries rely on insurance brokers to help them choose insurance plans that meet their needs and navigate the complexities of the Medicare Advantage program, the Justice Department said.
The Justice Department said that rather than acting in an unbiased manner and in the best interests of patients, the brokers directed Medicare beneficiaries to plans offered by insurers that paid them the most in kickbacks.
