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Drug lab to pay $256M federal settlement

October 19, 2015

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.

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