Seattle-based FidaLab pays $2M to settle Medicare overbilling case

A medical testing company based in Seattle agreed to pay $2 million to the government after it was alleged that the company overbilled government health care programs.

An investigation by the U.S. Department of Health and Human Services Office of Inspector General revealed that FidaLab improperly billed Medicare when they requested permission to bill a series of Urinary Tract Infection tests as a panel, had their request denied, and then billed the tests under multiple billing codes instead of a single code.

“We all have a stake in keeping healthcare costs under control,” U.S. Attorney Neil Floyd said. “Manipulating billing codes to overcharge for tests is an obvious area where we need to root out fraud. This case should be a warning to other companies to make sure they are billing for healthcare services appropriately.”

Despite the $2 million payment, FidaLab did not admit fault. Additionally, FidaLab agreed not to seek payment for the unallowed costs from any of the patients involved in these billings.

“Laboratories entrusted with taxpayer-funded health care programs must submit truthful and accurate claims,” Robb R. Breeden, acting special agent in charge with the U.S. Department of Health and Human Services Office of Inspector General, said. “Submitting false laboratory testing claims wastes critical resources and undermines trust in our health care system. HHS-OIG will continue working with our law enforcement partners to ensure taxpayer dollars are used as intended — to provide care for the American people.”

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