The month-long strike of 31,000 healthcare workers at Kaiser Permanente was abruptly brought to an end by the United Nurses Associations of California/Union of Health Care Professionals (UNAC/UHCP) as a series of legal confrontations arose, which expose the rottenness of America’s profit-driven healthcare system.
On February 20, Kaiser Foundation Health Plan and Kaiser Foundation Hospitals filed suit against nine major insurers, led by American International Group and Chubb Limited, seeking up to $95 million in directors and officers liability coverage. The payment would partially offset Kaiser’s recent $556 million settlement of whistleblower allegations accusing the organization of manipulating Medicare Advantage reimbursements through systematic diagnostic “upcoding.”
Kaiser employees will now confront the consequences of the betrayal of the UNAC/UHCP bureaucracy—deteriorating wages, medical coverage and working conditions. By contrast, the healthcare giant is maneuvering for reimbursement after a record fraud payout.
In January 2026, Kaiser affiliates agreed to pay $556 million to resolve False Claims Act allegations brought by the US Department of Justice. The resolution, the largest recovery ever tied to Medicare Advantage risk-adjustment practices, involved multiple entities, including Kaiser Foundation Health Plan Inc. and several Permanente Medical Groups.
The case originated in whistleblower lawsuits filed by former employees Ronda Osinek and James Taylor....
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