Whistleblower Partners: Kaiser Permanente to Pay $556 Million to Resolve Whistleblower Litigation Over Medicare Advantage Risk-Adjustment Practices

Representing the largest recovery of this nature to date

SAN FRANCISCO, Jan. 14, 2026 /PRNewswire/ -- Kaiser Permanente (Kaiser) has agreed to pay $556 million to resolve False Claims Act litigation alleging improper Medicare Advantage risk-adjustment practices, according to the U.S. Department of Justice. The case was brought by physician whistleblower Dr. James M. Taylor, along with other relators, and was later joined in part by the government.

Dr. Taylor, a longtime Kaiser physician and former medical director responsible for coding governance, compliance, and revenue-cycle oversight, filed his whistleblower complaint after identifying what he alleged were systemic practices that added or retained diagnosis codes not supported by patients' medical records. According to the pleadings, these practices inflated beneficiaries' risk scores and increased Medicare reimbursements without corresponding clinical justification.

Dr. Taylor was represented throughout the matter by Whistleblower Partners, a nationally recognized whistleblower law firm with deep experience in complex healthcare fraud and False Claims Act litigation.

"Working closely with Dr. Taylor over multiple years, we helped develop detailed, technically grounded allegations rooted in his firsthand experience inside Kaiser's Medicare Advantage operations," said Max Voldman, partner at Whistleblower Partners. "This settlement reflects the importance of whistleblowers who understand how these systems actually work."

"Dr. Taylor raised concerns internally long before they became public," added Michael Ronickher, partner at Whistleblower Partners. "It was only after years of calling out the problems he saw and many attempts to improve the alleged incorrect billing practices that he resigned and filed a formal complaint with the government. We were honored to help ensure his expertise and persistence translated into accountability."

The settlement resolves claims of Dr. Taylor's in which the government intervened. While the settlement includes no admission of liability, it represents the largest recovery to date involving alleged Medicare Advantage risk-adjustment misconduct.

The case aligns with broader concerns raised by federal investigators and widely reported in the media about incentives within the Medicare Advantage system that can encourage aggressive or improper coding practices. Medicare Advantage now covers more than half of all Medicare beneficiaries, making accurate risk adjustment critical to protecting taxpayers and program integrity.

"Physicians are trained to document care truthfully and accurately," said Dr. Taylor. "When financial pressure overrides that principle, it undermines trust in the system. I stayed as long as I did because I believed the problems could be fixed internally. There were moments of progress, but too often the solutions were undone. Filing a complaint was a last resort, not a first step. I'm grateful to Whistleblower Partners for standing with me and helping ensure these issues were taken seriously."

The Department of Justice has emphasized that enforcement in the Medicare Advantage space remains a priority, particularly where organizations fail to correct known errors or return overpayments once identified.

Whistleblower Partners and Dr. Taylor acknowledge the work of the government attorneys and investigators who pursued this matter on behalf of the United States. They expressed their appreciation to the Department of Justice and the Department of Health and Human Services Office of Inspector General for their diligence and collaboration in investigating and resolving the claims.

In particular, the team thanked Fraud Section Attorneys Braden Civins, Edward Crooke, Gary Dyal, Michael R. Fishman, Martha Glover, Seth W. Greene, Rachel Karpoff, Laurie Oberembt, and Jonathan Thrope, Assistant U.S. Attorney Michelle Lo for the Northern District of California, and Assistant U.S. Attorney Kevin Traskos for the District of Colorado, and their colleagues for their sustained commitment to protecting the integrity of the Medicare program.

Dr. Taylor expressed hope that the resolution will encourage healthcare organizations to strengthen compliance programs, respond meaningfully to internal warnings, and foster environments where raising concerns is viewed as a professional responsibility—not a liability.

Dr. Taylor has indicated that he intends to donate a significant portion of his whistleblower award to charitable causes focused on education and healthcare access in underserved communities. One such organization is Musana, a nonprofit that supports schools and hospitals in rural Uganda through a sustainable development model. Dr. Taylor has said that his decision reflects his belief that accountability and public service extend beyond the courtroom.

About Whistleblower Partners

Whistleblower Partners has significant experience representing whistleblowers in False Claims Act (FCA) cases involving Medicare Advantage risk-adjustment practices. The firm has represented five whistleblowers, including Dr. Taylor, in successful FCA matters alleging risk-adjustment fraud, and currently represents an additional whistleblower in ongoing litigation against UnitedHealthcare.

Prior matters include representations involving:

• Freedom Health (Dr. Darren Sewell), which concerned alleged systemic submission of unsupported diagnosis codes for Medicare Advantage risk-adjustment and failure to delete invalid codes after audits
• Independent Health/GHC (Teresa Ross), involving alleged aggressive risk-adjustment coding practices including the use of a vendor to identify and submit unsupported diagnosis codes
• Sutter Health (Kathy Ormsby), which alleged a pattern of improper upcoding resulting from various internal campaigns to add codes and ignoring red flags about the results.
• DaVita, Inc., addressing allegations that its subsidiary, HealthCare Partners, violated the Antikickback Statute by making improper payments to patients and providers to drive Medicare Part C business.
• Ongoing representation of Benjamin Poehling in FCA litigation concerning UnitedHealthcare's Medicare Advantage risk-adjustment practices, including alleged one-way look retrospective chart review.

Media Contact:
Frank De Maria
Purposeful Advisors
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+1 347 674 0284

Elie Jacobs
Purposeful Advisors
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+1 646 330 2585

SOURCE Whistleblower Partners LLP