The National Association of Medicaid Fraud Control Units Announces a $12.4 Million Dollar Settlement

A $12.4 million national Medicaid civil settlement with Quest Diagnostics Incorporated (Quest) and its former subsidiary Nichols Institute Diagnostics (NID), resolves claims regarding the accuracy of various NID diagnostic tests manufactured, marketed and sold to laboratories during 2000-2006. These were then used to perform testing which the Medicaid Programs paid for.

The federal and state cases stemmed from a qui tam or whistleblower lawsuit which alleged that certain test kits manufactured by NID and used by laboratories to measure parathyroid levels in blood samples, produced an unacceptable level of elevated results. The test kits at issue were disproportionately billed to Medicare, meaning the payments by State Medicaid Programs for these tests were limited.