NC-based Radeas agrees to pay $3.6 million for alleged fraudulent drug tests
A clinical laboratory company has agreed to pay the state millions of dollars after allegedly submitting false claims for urine drug tests to the North Carolina Medicaid program, according to a press release from the state Attorney General’s office.
Radeas, headquartered in Wake Forest, allegedly billed the state’s Medicaid program for drug tests that were not medically necessary between 2016 and 2021.
The company offered to perform two drug tests simultaneously on a single sample, even though Medicaid policy stipulates that a second, more expensive, test should only be done in certain circumstances after the first is completed.
The company was therefore reimbursed for Medicaid funds it was not entitled to, the Attorney General press release read.
The state Medicaid program and North Carolina public schools will receive the $3.6 million paid in this settlement money.
A Radeas spokesperson said the company has worked with the state since the issue was brought to its attention but “denies all allegations of any wrongdoing or any false claim”.
In March, Radeas agreed to a $11.6 million settlement in Massachusetts for fraudulent billing as well. In that agreement, the company also allegedly billed Medicare for medically unnecessary urine tests.
Teddy Rosenbluth covers science for The News & Observer in a position funded by Duke Health and the Burroughs Wellcome Fund. The N&O maintains full editorial control of the work
