LabTox Agreed to Be Excluded for 20 Years for Allegedly Submitting False Claims for Drug Testing

On February 2, 2024, in connection with the resolution of their False Claims Act liability, LabTox, LLC (LabTox), Lexington, Kentucky, agreed to be excluded under 42 U.S.C. 1320a-7(b)(7) for 20 years. OIG alleged that LabTox submitted false claims to Medicare and Kentucky Medicaid for urine drug tests referred by Blue Waters Assessment and Testing Services and performed only to satisfy court orders, not for purposes of medical diagnosis or treatment. These claims were false because Medicare and Kentucky Medicaid do not cover claims for urine drug tests performed for non-medical purposes, such as tests performed only to satisfy a court order. As a result of these false claims, LabTox received payments from Medicare and Kentucky Medicaid to which it was not entitled. Senior Counsel Andrea Treese Berlin represented OIG.

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