BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced on Friday that she has reached a $525,000 settlement with a laboratory that allegedly engaged in Medicaid fraud.
Clinical Science Laboratory, Inc., allegedly billed Medicaid for urine drug tests found to be ordered for purposes Medicaid doesn't cover, including tests not ordered by a doctor or authorized provider.
"Overbilling the state's Medicaid program for unauthorized testing takes health care resources away from the people that need it most," Coakley said. "We will continue to work with our state and federal partners to police abuse of the program that so many people depend on."
Coakley's Medicaid Fraud Division alleged that in a five-year period beginning in 2004, Clinical Science billed Medicaid for numerous unauthorized urine drug tests, which violated state law and Medicaid rules and regulations. The result of these bills were significant overpayments to the company, Coakley says.
In addition to the $525,000 settlement, Clinical Science must also comply with all state laws and Medicaid regulations from now on.
Last year, Coakley's office secured approximately $51.6 million in Medicaid fraud recoveries and has recovered $125 million overall since Coakley took office three years ago.