Kaiser Can't Escape Medicare Advantage FCA Suit

Law360, Chicago (October 15, 2013, 6:42 PM EDT) -- A California federal judge refused Tuesday to toss a whistleblower suit accusing Kaiser Foundation Health Plan Inc. of reaping excessive profits under Medicare Advantage contracts, rejecting the HMO giant's argument that the plaintiff's newest complaint contradicts prior versions.

U.S. District Judge Jeffrey S. White denied Kaiser's motion to dismiss the False Claims Act suit brought by Chris McGowan, a former Kaiser managing director who alleges the company subsidizes its commercial operations “on the backs of taxpayers.”

“Although Kaiser identifies specific statements in the [third amended complaint]...
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