Labcorp to Pay California $50 Million, Other States Still Investigating

Labcorp, a laboratory testing company, reached a $50 million settlement with the state of California to settle allegations that it overbilled Medi-Cal, the state’s low-income health insurance program, $72 million over fourteen years.  Labcorp allegedly gave private insurers discounts if they required providers serving their network to refer Medi-Cal patients to Labcorp for medical testing, commonly referred to as a “pull-through” kickback scheme.  The suit claimed that Labcorp routinely provided its services at substantial discounts to cooperating private insurers.

Florida, Virginia, Michigan, New York, and Massachusetts have all sent subpoenas to Labcorp regarding the same scheme.  Earlier this year, Quest Diagnostics agreed to pay $241 million to settle a similar case with the state of California.  Quest Diagnostics reported that a qui tam case has been filed against it in New York.

Read the entire article, “Meet the Company That Outlined Its Kickback Scheme in PowerPoint”