Kaiser Permanente is taking nine of its D&O insurers to court, alleging they walked away from a hundreds-of-millions-dollar settlement.
The healthcare giant filed a suit on February 20 in the US District Court for the Northern District of California, naming National Union Fire Insurance Company of Pittsburgh, Pa. (AIG), Federal Insurance Company (Chubb), Berkley National Insurance Company, Starr Indemnity & Liability Company, National Fire & Marine Insurance Company, RSUI Indemnity Company, Markel American Insurance Company, Fair American Select Insurance Company, and Allianz Global Risks US Insurance Company as defendants.
At the heart of the dispute is a settlement Kaiser reached in January 2026 to resolve a sprawling False Claims Act case that had been building since 2013. That case = brought by the US Department of Justice and six whistleblower plaintiffs - accused Kaiser of submitting improper risk-adjusted Medicare Advantage claims tied to diagnoses allegedly added through addenda dating back to 2009. The DOJ's case included allegations of presenting false claims, using false records or statements, and conspiring to violate the False Claims Act, among other counts. The government sought treble damages, civil penalties, and costs.
Kaiser carried a D&O liability insurance tower totaling $95 million, anchored by a primary policy from AIG with $10 million in...
Story by Charlotte Keith of Spotlight PA Spotlight PA is an independent, nonpartisan, and nonprofit newsroom producing investigative and public-service journalism that holds power to account and d...