Nearly $1M in restitution headed to Washingtonians after COVID-19 testing lab settlement

Nearly $1 million in restitution is being repaid to Washingtonians following a multistate settlement with a COVID-19 testing lab that overcharged its patients and failed to deliver timely results.

An 18-state coalition, with Washington as co-lead, investigated multiple problems with GS Labs testing practices nationwide from 2020 through 2022, the Washington Attorney General’s Office announced.

Inside the COVID-19 testing practices that triggered the multistate settlement

The issues include how GS Labs intentionally advertised inflated “cash prices” for its COVID-19 tests, sometimes reaching as high as $380 per test or nearly $1,000 for a multi-panel test. These prices were used to justify overcharges for patients with insurance coverage.

GS Labs offered cash-price discounts to cash-paying patients, but roughly 30,000 patients still paid more than the market rate for a COVID-19 test.

“During the height of the pandemic, GS Labs unfairly profited off of Washingtonians just trying to get tested for COVID-19,” Attorney General Nick Brown said. “This is another great example of how our office vigorously enforces Washington’s consumer protection laws to protect people from deceptive business practices.”

The AG’s Office also noted that hundreds of thousands of patients were guaranteed test results within three days, but the lab failed to deliver on that promise, sometimes taking more than a week to provide results.

The company also advertised to patients with insurance that they would incur no out-of-pocket costs, but still charged administrative fees of up to $49 per test to roughly 70,000 patients.

Who qualifies for restitution, how much they could receive

In total, GS Labs will pay $3.6 million in restitution to patients in the 18 plaintiff states. This includes $1.8 million for cash-paying patients who were overcharged for testing, $1.75 million for patients overcharged with administrative fees, and roughly $34,000 for cash-paying patients who didn’t receive their test results within three days.

For Washington alone, more than $987,000 will be available in compensation to residents harmed by the company’s testing practices.

The AG’s Office noted that more than 11,000 people in Washington are expected to qualify for restitution, with amounts ranging from $5 for people improperly charged administrative fees to $200 for patients paying out of pocket for a COVID-19 test.

To determine eligibility and receive a restitution payment, consumers must complete a verification process available here.

The rules GS Labs must follow if it ever resumes testing

GS Labs proved to the 18 states that it no longer offers testing services and is not operational. In the settlement, if GS Labs decides to resume testing services, it must make various changes to its advertising and sales practices, including:

• Disclose in its marketing materials the maximum time for it to provide results.
• Report testing results within the advertised period, and if it cannot, GS Labs must notify patients of the delay and offer a full refund.
• Comply with local, state, and federal requirements for promptly delivering COVID-191 test results and notifying of any delays.
• Cease charging cash-paying patients fees more than market rates, charging patients for late test results, and charging administrative fees in violation of state and federal laws.
• Disclose in its marketing materials the actual cash price that will be charged to patients, including any applicable discounts.
• Cannot charge administrative fees for COVID-19 testing services.
• Cannot unjustifiably increase the cost of its testing services during a declared emergency.

The settlement was negotiated by Attorney General Nick Brown’s office, alongside the attorneys general of Kansas, Minnesota, and Nebraska. Other attorneys general that are joining the settlement include Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Massachusetts, Missouri, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, and South Dakota.

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