Kaiser Settles Medicare Fraud Allegations for $556 Million (1)

Affiliates of Kaiser Permanente, the health system giant, agreed to pay more than half a billion dollars to settle allegations that it gamed the Medicare payment system for profit.

The $556 million civil fraud settlement disclosed Wednesday by the US Department of Justice is among the largest amounts paid by an insurer to resolve claims of fraud in Medicare Advantage, the private version of the US health program for seniors. Cigna Group paid $172 million to resolve similar claims in 2023.

Kaiser Permanente didn’t admit liability as part of the settlement. The company said it “chose to settle to ...