Michigan Medicaid Program to Receive $250,000 for Lab Testing Fraud Settlement

by San Antonio Attorney

Millennium Health is a reference laboratory testing company based in San Diego that agreed to pay $256 million in compensation to resolve claims of misrepresenting the need for procedures and gave gifts to physicians in exchange of providing connection, according to the U.S. Department of Justice.

A total of 24 states, including Michigan, will receive a monetary compensation of $24 million, according to J. Marc Vezina, a partner with Birmingham-based Vezina Law Group.

Michigan is expected to get $250,000 from the lawsuit.  Vezina said that the case was not an isolated one since there are other laboratories that lay loose with payments on Medicaid and Medicare.

Millennium plans to file for bankruptcy protection by November 10. This move will allow a turnover of the company to its lenders.

The payment made will amend all allegations that Millennium violated against the False Claims Act.  Millennium allegedly persuaded doctors to order laboratory tests that were unnecessary, according to the U.S. Attorney’s Office District of Massachusetts.

The lawsuit pointed out to the accusation of Millennium misrepresenting to doctors the importance of a $1,800 genetic test for patients undergoing pain management.

Millennium officials disputed some of the allegations made by the Justice Department against the company.  However, the company finally decided to move on with the settlement.

Creditors must vote to recognize a prearranged bankruptcy plan by November 8.  This deal requires a bankruptcy judge to confirm the company’s bankruptcy plan by Dec. 21 and pay the settlement by Dec. 30.

Omni, a Melbourne-Florida based provider, also pointed out the allegation that Millennium violated the federal False Claims Act by doing the act of billing federal and state health care programs for medically unnecessary genetic tests on patients for their own benefit.

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