One of the nation’s largest drug testing laboratories will pay $256 million to settle allegations it over-billed the U.S. government for urine drug tests. The Justice Department found that Millennium Health billed the government for unnecessary urine drug tests and genetic testing.
The whistleblower in the suit was Melbourne, Florida-based Omni Healthcare Inc. As a whistleblower, Omni Healthcare will get a cut of the settlement. Check here to read the announcement.
Marc Vezina is a lawyer representing Omni Healthcare.
“There will be a sizable portion of money being returned to the state of Florida Medicaid program, both for the urine drug testing and for the genetic testing,” Vezina said.
Health insurer Cigna recently announced it would no longer sell individual health plans in Florida because of rampant drug testing fraud.
“It would be silly to think what Millennium was doing to the government, that they weren’t also trying to do to private payers,” Vezina said.
In a statement, Millennium Health said the settlement closes an investigation started nearly four years ago. The company now plans Chapter 11 bankruptcy reorganization.
Millennium Health also agreed to have most of its board of directors replaced with independent members, and will be under government oversight for the next five years.