Millennium Health inks $256M deal to settle kickback, false claims allegations

San Diego-based Millennium Health, formerly Millennium Laboratories, has agreed to pay the federal government $256 million to resolve claims the company violated the False Claims Act and the Anti-Kickback Statute, according to the Department of Justice.

The government alleged Millennium systematically billed federal healthcare programs for excessive and unnecessary urine drug testing from Jan. 1, 2008, through May 20, 2015. The government claimed Millennium caused physicians to order excessive numbers of urine drug tests through the promotion of "custom profiles," which led physicians to order a large number tests without an individualized assessment of each patient's needs.

The government further alleged Millennium submitted false claims to Medicare and Medicaid from Jan. 1, 2012, through May 20, 2015, for genetic testing that was performed routinely and without an individualized assessment of each patient's needs.

Under the agreement, Millennium will pay $237 million to resolve the false claims allegations. The company also agreed to pay CMS $19.2 million to resolve certain administrative actions related to its urine drug testing billing practices, according to the DOJ.

Although Millennium has agreed to this settlement, there has been no determination of liability in the case.

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