Home / Crime and Justice / Kaiser Permanente Fined $556M for Medicare Fraud
Kaiser Permanente Fined $556M for Medicare Fraud
15 Jan
Summary
- Kaiser Permanente affiliates paid $556 million to settle fraud claims.
- Claims alleged illegal pressure on doctors to inflate patient diagnoses.
- Settlement resolves whistleblower lawsuits over Medicare Advantage payments.

Five Kaiser Permanente affiliates in California and Colorado have agreed to pay $556 million to settle claims that they illegally manipulated patient diagnoses for increased Medicare payments. The U.S. Department of Justice announced the settlement on January 14, resolving two whistleblower lawsuits that accused Kaiser of violating the federal False Claims Act.
According to the Justice Department, Kaiser Permanente affiliates pressured doctors to add diagnosis codes for conditions they had not considered, thereby inflating payments from the government. This practice allegedly occurred between 2009 and 2018, impacting Medicare Advantage payments which are higher for sicker patients.
The settlement was initiated by former Kaiser employees Ronda Osinek and James Taylor, who will receive approximately $95 million for their role as whistleblowers. The U.S. Attorney's office emphasized that such fraud costs the public billions annually, impacting beneficiaries and taxpayers alike.




