NEW YORK, NY — A federal judge has refused a government attempt to force testimony about behind-the-scenes legal strategy in a major healthcare fraud case against Anthem Inc., ruling that those communications remain protected.
In a decision issued April 27, U.S. Magistrate Judge Katharine H. Parker denied a motion by the U.S. government seeking to compel a third-party witness to disclose what was discussed during deposition preparation sessions with Anthem’s attorneys.
Dispute Centers on Witness Preparation
The case is part of a broader False Claims Act lawsuit in which the government accuses Anthem of improperly inflating payments from Medicare by submitting unsupported diagnosis codes.
At issue in this ruling was testimony from Deborah Bradley, a former executive at Verscend, a company hired by Anthem to conduct “chart reviews” of patient records. Those reviews were used to identify additional diagnoses that could increase federal payments to the insurer.
Before her deposition, Bradley met with her own attorney—who also represents Verscend—and Anthem’s legal team to prepare. During her testimony, questions arose about what was discussed in those prep sessions.
Government Sought Access to Communications
Federal prosecutors argued that any protections over those discussions had been waived because multiple parties were present, including lawyers representing different entities.
They asked the court to compel Bradley to testify about those conversations, asserting they were relevant to whether Anthem knowingly engaged in fraudulent practices.
Court Finds Protections Still Apply
Judge Parker disagreed, concluding that the communications remain protected under the work-product doctrine and attorney-client privilege.
The ruling accepted arguments that Anthem, the witness, and her former employer shared a “common legal interest,” allowing them to coordinate without waiving privilege.
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Key Points
• Judge denied government bid to access deposition prep discussions in Anthem case
• Court ruled communications protected by work-product and joint defense privilege
• Dispute tied to broader Medicare fraud allegations against insurer
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Larger Fraud Case Continues
The underlying lawsuit accuses Anthem of failing to delete unsupported diagnosis codes during chart reviews, allegedly boosting payments from the Centers for Medicare & Medicaid Services.
Anthem denies wrongdoing, arguing its practices were consistent with industry standards and known to regulators.
Current Status
The government cannot question the witness about the disputed preparation discussions, but the broader False Claims Act case against Anthem remains ongoing in federal court.
