Toxicology lab paying $4.8M to settle Medicaid billing allegations

Santa Rosa, Calif.-based Redwood Toxicology Laboratory will pay nearly $4.8 million to resolve allegations it overcharged the Connecticut Medicaid program for lab services, the Connecticut Attorney General's Office said March 7.

Redwood Toxicology provides drug testing services for substance abuse patients enrolled in the state's Medicaid program, the office said. The lab is alleged to have violated regulations by charging the program $38 for some drug tests while only charging $2 to $10.50 for the same tests when they were ordered by other third parties, according to the statement.

The alleged overbillings occurred between Jan. 1, 2015, and Feb. 24, 2018, the office said.

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