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Trump’s DOJ Accuses Medicare Advantage Insurers of Paying ‘Kickbacks’ for Primo Customers

  • On May 1, 2025, the U.S. Department of Justice filed a lawsuit in Massachusetts accusing Aetna, Elevance Health, and Humana of paying kickbacks to brokerages from 2016 to 2021.
  • The lawsuit alleges these payments, described as marketing or sponsorship fees, incentivized brokers to steer Medicare beneficiaries toward Medicare Advantage plans, discouraging enrollment of costlier disabled patients.
  • Internal emails cited show Anthem paid GoHealth over $230 million for hitting sales targets, while beneficiaries faced risks such as unwanted plan switches that increased treatment costs by $17,000.
  • David Lipschutz highlighted that there are strong monetary motivations encouraging agents and brokers to promote Medicare Advantage plans, while Brian Connell described these motivations as problematic and called for congressional action to address them.
  • The case is expected to intensify debate over private-sector Medicare roles, potentially prompting legislative changes amid concerns about plan suitability and consumer protection.
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Trump’s DOJ accuses Medicare Advantage insurers of paying ‘kickbacks’ for primo customers

When people call large insurance brokerages seeking free assistance in choosing Medicare Advantage plans, they’re often offered assurances such as this one from eHealth: “Your benefit advisors will find plans that match your needs — no matter the carrier.”

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kffhealthnews.org broke the news in on Monday, May 19, 2025.
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