Attorney General Raúl Labrador has announced a settlement of $219,321.25 in a Medicaid fraud case involving Precision Diagnostics. The company was investigated for allegedly submitting false claims to the Idaho Medicaid Program between January 2013 and December 2022. The claims involved medically unnecessary drug analysis tests, reportedly submitted by doctors who received free drug-testing supplies from Precision Diagnostics in exchange for laboratory testing referrals. This practice is said to violate state and federal anti-kickback laws.
The Idaho settlement is part of a larger national investigation into Precision Diagnostics, which resulted in a total settlement amounting to $27 million. Attorney General Labrador emphasized the importance of maintaining high standards when handling taxpayer funds, stating, “It is essential that all agents and actors of Medicaid are held to the highest standard of scrutiny when conducting business with taxpayer dollars.” He added that the settlement aims to ensure that funds are used for providing health services to Idahoans rather than benefiting contractors and providers through fraudulent means.
The investigation was conducted by the Attorney General’s Medicaid Fraud Control Unit along with the Idaho Department of Health and Welfare’s Medicaid Division. Precision Diagnostics has already begun making restitution payments, with Idaho's share being $69,220.28, which will be returned to the state's Medicaid Division.