Chicago-based Oak Street Health, owned by CVS Health since 2023, agreed to pay $60 million to settle allegations that it was involved in a kickback scheme that violated the False Claims Act.
The allegations include claims that Oak Street Health was paying kickbacks to third-party insurance agents in exchange for recruiting older adults to the primary care provider's clinics, according to a Sept. 18 news release from the Justice Department.
The department alleged that in 2020, Oak Street Health created a program to increase patient memberships. Under this program, insurance agents contacted older adults who were eligible or enrolled in Medicare Advantage and advertised Oak Street Health to them. Agents then referred individuals to the provider, and Oak Street Health then paid these agents $200 per beneficiary who signed on, incentivizing agents to act in the interest of Oak Street Health's financial incentives as opposed to the interest of patients, amounting to kickbacks, the Justice Department said.
The settlement covers allegations from September 2020 to December 2022.