Blue Cross and Blue Shield Minnesota files lawsuit against COVID-19 lab for price inflation, fraudulent billing

Blue Cross and Blue Shield of Minnesota is suing Omaha, Neb.-based COVID-19 testing lab GS Labs, Twin Cities Pioneer Press reported March 1.

The insurer claims GS Labs inflated the price of its most common test up to five times the market value, the report said. The lab is also alleged to have fraudulently administered unnecessary tests to drive up billing.

GS Labs spokesperson David Leibowitz said the lawsuit amounted to "strong-arm gamesmanship," and that Blue Cross owes the company more than $1 million for tens of thousands of tests, the report said.

"GS Labs has followed federal law to the letter," Mr. Leibowitz said, according to the report. "Our posted cash price for COVID tests is in line with the marketplace across the U.S. and we have been paid that price or a negotiated rate by numerous insurers around the country."

The lab said in January that its advertised cash price for a COVID-19 rapid antigen test was $179, the report said.

GS Labs has locations in nine states, including eight facilities in Minnesota.

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