Jan. 29 at 2:53 AM
$EHTH Update: January 2026
Motion to Dismiss Hearing: On January 23, 2026, Chief Judge Denise Casper heard oral arguments on eHealth’s motion to dismiss the case.
The Defense: eHealth’s lawyers argued that their marketing payments are a standard, legal part of the industry regulated by CMS for decades. They claim the government is trying to turn a complex regulatory disagreement into a "fraud" case.
Privileged Information Dispute: eHealth has also filed a motion to conduct limited discovery into the whistleblower (Andrew Shea), claiming he may have used "unauthorized privileged information" to build the case, which could potentially taint the DOJ’s investigation.
If eHealth loses, they could face triple damages and massive civil penalties under the False Claims Act. This comes at a sensitive time for the company, as they just secured a new
$125 million credit facility earlier this month to stabilize their finances
