Agents & how we are paid
Federal Court Allows DOJ Lawsuit Against Three Major Medicare Advantage Insurers and Their Brokers to Proceed
A federal judge ruled in March 2026 that Aetna, Humana, and Elevance Health must face allegations they paid illegal kickbacks to online brokerages to direct Medicare enrollees to their plans, with some payments allegedly tied to limiting sign-ups of people with disabilities.
By the Goodsurance editorial teamAugust 18, 2026
The Department of Justice filed a civil lawsuit in May 2025 against three large Medicare Advantage insurers, Aetna, Humana, and Elevance Health, as well as three large online brokerages, eHealth, GoHealth, and SelectQuote. The case originated as a whistleblower complaint under the False Claims Act, filed in 2021. The DOJ alleged the insurers paid hundreds of millions of dollars in what were labeled marketing funds to the brokerages from 2016 through at least 2021, in exchange for directed enrollments into their plans.
On March 25, 2026, a federal district court in Massachusetts denied a joint motion by all six defendants to dismiss the case. All defendants have denied the allegations and said they plan to fight the claims in court.
A federal judge allowed a DOJ lawsuit to proceed alleging three major Medicare Advantage insurers paid brokers to steer beneficiaries, and allegedly pressured brokers to limit enrollment of people with disabilities.
The lawsuit raises two distinct concerns for Medicare consumers. First, the government alleges that brokers were financially rewarded based on which insurer paid them the most, rather than which plan would best serve a given beneficiary. Second, the DOJ alleges that Aetna and Humana pressured the brokerages to limit enrollment of Medicare beneficiaries with disabilities, whom the insurers reportedly viewed as more costly. If proven, that second allegation would constitute unlawful discrimination.
The case is proceeding in the U.S. District Court for the District of Massachusetts. No trial date has been set.
In plain words
The government sued three big Medicare Advantage insurance companies and three large online insurance brokers. The government says the insurers paid the brokers to point seniors toward their plans, rather than toward the best plan for each person. The government also says the insurers pushed brokers to sign up fewer people with disabilities. A judge said the case can move forward. All the companies say the claims are wrong and plan to fight in court.
Understand the basics first
Source: KFF Health News
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