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Notable Settlement
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$98 Million

Independent Health — Medicare Advantage Diagnosis Fraud

Independent Health to Pay Up to $98 Million for Medicare Advantage Fraud

By Angie KellyLast updated: December 4, 2024

Source: U.S. Department of Justice

TL;DR: Independent Health to Pay Up to $98 Million for Medicare Advantage Fraud This case resulted in a $98 Million resolution and demonstrates the impact of whistleblower protections in recovering funds from fraud.

Summary

Medicare Advantage provider Independent Health agreed to pay up to $98 million to settle False Claims Act allegations that it knowingly submitted invalid diagnosis codes for Medicare Advantage enrollees to increase payments from CMS. DOJ alleged the company systematically inflated "risk scores" by submitting diagnoses that were not supported by patient records, resulting in excessive reimbursements from the Medicare program.

Our Take

Medicare Advantage risk adjustment fraud often involves chart review programs designed to "find" diagnoses rather than verify accuracy. Insiders may have access to training materials that emphasize revenue capture, quality metrics showing unusually high diagnosis rates, physician complaints about pressure to add codes, and communications acknowledging the gap between documentation and clinical reality. If you've seen risk adjustment treated as a revenue optimization exercise, document the process and any internal acknowledgment of inaccuracy.

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Notice

The summaries above are based on publicly available information released by the U.S. Department of Justice and are provided for informational purposes only. They do not constitute legal advice, investigative findings, or allegations by Disclosure Strategy. Our commentary reflects general, experience-based observations about how False Claims Act matters commonly arise and is not a statement about any party's liability.