BOSTON (AP) — A drug testing lab has agreed to pay the federal government $256 million following allegations it billed federal healthcare programs for medically unnecessary testing.
U.S. Attorney for Massachusetts Carmen Ortiz announced Monday that Millennium Health will pay $227 million to resolve allegations it billed Medicare, Medicaid, and other federal healthcare programs for unnecessary urine drug testing from Jan. 1, 2008 through May 20, 2015.
The San Diego-based company, formerly Millennium Laboratories, will also pay $10 million to resolve allegations it submitted false claims for medically unnecessary genetic testing from Jan. 1, 2012 through May 20, 2015.
The company also reached a $19 million settlement with the Centers for Medicare and Medicaid Services.
Ortiz said the company increased medical costs without serving patients’ needs.