Laboratory Corporation of America (Labcorp) has agreed to pay $14.5 million to resolve allegations that it improperly billed Medicare for medically unnecessary urine drug tests, the U.S. Department of Justice announced.
Medicare Fraud Allegations
According to the Justice Department, Labcorp frequently performed both presumptive and definitive urine drug testing on the same patient visit and billed Medicare for both, resulting in reimbursement for tests that were not medically necessary.
The government alleged that Labcorp performed definitive testing without first conducting a presumptive test to determine whether additional testing was medically necessary, resulting in Medicare paying for unnecessary services.
Labcorp admitted and accepted responsibility for certain conduct related to its Medicare billing practices as part of the settlement.
Original reporting: The Dallas Express — read the source article.