State audit claims lab overcharged $24 million

A Long Island lab is being asked to reimburse New Jersey’s Medicaid program almost all of the $25 million it was paid for drug testing work over nearly four years after a state watchdog agency found it vastly overcharged for some procedures, among other alleged violations.

Truetox Laboratories LLC called it an “unjustified penalty” and “an abuse of oversight” and said it plans to appeal the results of the audit by the New Jersey Office of the State Comptroller, according to a statement the company’s attorney provided NJ Spotlight News Friday morning.

The comptroller’s audit, released Wednesday, claims Truetox Laboratories LLC overbilled the program more than $24 million between January 2015, when it began conducting urinalysis and other testing for the public insurance program, and July 2018. Truetox is one of the Medicaid program’s highest-paid laboratory services, collecting fees that ranged between less than $1 million to more than $12 million annually, according to the comptroller’s office.

Source: State audit claims lab overcharged $24 million / NJ Spotlight News

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