$14 Billion Medicare Scam by Quest & LabCorp exposed [View all]

[cbdo2007]

March 23, 2012 /PRNewswire-USNewswire/ -- Quest Diagnostics Incorporated (Quest) and Laboratory Corporation of America (LabCorp), the nation's two largest laboratories, are currently involved in a multi-billion dollar Medicare scam, according to a lengthy and critical expose published in one of the medical laboratory industry's leading trade publications.

The Dark Report revealed recently that the two labs have billed the federal government $14 billion in questionable Medicare fees over a 10-year period and that the practice continues today.

This long-running Medicare and Medicaid fraud has generated billions in profits for the companies, turning them into market leaders at taxpayers' expense, said Karen Hinton, a representative for NPT Associates and Fair Laboratory Practices Associates, plaintiffs in federal lawsuits against Quest and LabCorp.

..."The scam works like this: Quest and LabCorp provide kickbacks to private insurance companies – in the form of deeply-discounted and sometimes below-cost lab fees. In exchange, the insurance companies pressure doctors in their networks to send all of their patients' lab work, including Medicare and Medicaid patients, to either Quest or LabCorp. The labs fund the kickbacks (lower lab fees for private insurance patients) by overcharging Medicare and Medicaid patients anywhere from 70% to 500% higher. For example, Quest charged the State of California $8.59 for a complete blood test, but billed private insurers only $1.43."

http://www.sacbee.com/2012/03/23/4360973/medicare-scam-by-quest-labcorp.html#storylink=cpy