DOJ Whistleblower Intervention Spotlights ‘Nefarious’ Medicare Sales System
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May 15, 2025
News that the Dept. of Justice joined a whistleblower lawsuit alleging a massive kickback scheme between three major insurers and three large broker organizations sent shock waves through the industry and stock prices downward. But to those with experience selling health insurance, the allegations aren’t terribly shocking and bring to light deeply misaligned incentives across the industry.
A major question going forward, insiders say, is whether the lawsuit will lead to regulations that properly address these incentives and weed out the so-called “bad actors” or whether the status quo will be allowed to continue.
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