Burlington-based Laboratory Corporation of America, better known as LabCorp, still hasn’t complied with two U.S. Senators.
Senator Max Baucus from Montana and Chuck Grassley from Iowa want the company to turn over financial documents and lab records after the company was accused of overbilling Medicaid and Medicare. Baucus and Grassley have been waiting on these documents since December.
A federal lawsuit filed by the NPT Associates in New York accuses LabCorp of making a deal with United Health Group to provide discounted testing in exchange for becoming its exclusive in-network lab partner. NPT Associates said LabCorp took full payments from Medicaid and Medicare procedures, even though it gave insurance companies discounts for those same procedures.
The lawsuit stated that this practice, also called a “pull through scheme,” is a violation of the Anti-Kickback Law. That law mandates that no other health care company can bribe or rebate other parties to encourage them to order any service federal health programs may pay for.
In the lawsuit LabCorp describes itself as “the second largest independent clinical laboratory company in the United States.” LabCorp receives close to $1 billion per year from Medicare.
In a joint statement to FOX8 News, Senators Baucus and Grassley stated that LabCorp has provided the least amount of information, and it’s rare for anyone to decline to provide a full response.
The Senate does have the power to subpoena these documents, but there’s no word on if they will. Labcorp settled a similar lawsuit in California for nearly $50 million.