MedCity News January 15, 2026
Five Kaiser Permanente affiliates agreed to pay $556 million to settle allegations from the Department of Justice that they improperly inflated Medicare Advantage payments through inaccurate diagnosis coding. The case is one of the largest risk-adjustment settlements to date — and it signals continued federal scrutiny of the program.
Five affiliates of Kaiser Permanente have agreed to pay $556 million to the Department of Justice to resolve allegations under the False Claims Act that they improperly boosted payments from the Medicare Advantage program.
The affiliates involved in the settlement, which was announced January 14, are Kaiser Foundation Health Plan Inc., Kaiser Foundation Health Plan of Colorado, The Permanente Medical Group Inc., Southern California Permanente Medical Group and Colorado Permanente Medical...







