The U.S. Justice Department filed a lawsuit on May 1, 2025, against several top health insurance companies, including Elevance Health, alleging they used illegal kickbacks to steer members into certain private Medicare Advantage plans. The complaint claims that these insurers and brokers engaged in practices that violated federal regulations.
Elevance Health is among the publicly traded companies named in the complaint, which introduces significant regulatory risk and potential financial penalties for the company. This legal action highlights increased scrutiny on Medicare Advantage billing practices and marketing strategies within the healthcare industry.
The lawsuit could lead to substantial fines, reputational damage, and necessitate changes in business practices within the Medicare Advantage segment, a core part of Elevance Health's operations.
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