Kaiser Loses Bid To Toss Ex-Worker's False Claims Case

Law360, San Diego (December 6, 2012, 10:25 PM EST) -- Kaiser Foundation Health Plan Inc. on Thursday lost its bid to dismiss a former employee's suit accusing it of reaping excessive profits under Medicare Advantage contracts, as the California federal judge found the whistleblower had shown strong indications that false claims had been submitted.

U.S. District Judge Jeffrey White rejected claims in the HMO giant’s dismissal bid that the qui tam relator’s allegations were fatally inconsistent, clearing the way for the suit to proceed.

Former managing director Chris McGowan claims the company subsidized its commercial business...
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