CVS Health (NYSE:CVS) subsidiary Oak Street Health has reached a $60M settlement with the Department of Justice to resolve allegations that it paid third-party insurance agents kickbacks to steer customers to its clinics.

The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, money or anything else of value to induce referrals of patients or to provide recommendations of items or services covered by Medicare,

Oak Street Health, a Chicago-based primary care provider and subsidiary of CVS Health since 2023, has agreed to pay $60 million to settle allegations that it violated the False Claims Act. The company was accused of paying illegal kickbacks to third-party insurance agents as part of a scheme to recruit seniors for Medicare Advantage plans.