Company Resolves Liability in Patient Recruitment Scheme

Oak Street Health, which has been a wholly-owned subsidiary of CVS Health since 2023, has agreed to pay $60 million to resolve allegations that it violated the False Claims Act by paying kickbacks to third-party insurance agents in exchange for recruiting seniors to Oak Street Health’s primary care clinics. The agents allegedly contacted seniors eligible for or enrolled in Medicare Advantage and delivered marketing messages designed to generate interest in Oak Street Health. The company allegedly paid agents typically $200 per beneficiary referred or recommended. Read a story from JD Supra and a Department of Justice press release.

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