Vermont AG obtains $73,500 Medicaid recoupment from Michigan drug testing company

A Michigan-based company will pay the State of Vermont in excess of $73,500 to settle claims that it obtained payments from the Vermont Medicaid Program to which it was not entitled, according to Vermont Attorney General William H Sorrell. The provider, Physicians Toxicology, LLC offers laboratory services to clinicians. The civil settlement resolves an investigation conducted by the Medicaid Fraud and Residential Abuse Unit of the Office of the Attorney General into Medicaid claims for urinalysis drug testing made by Physicians Toxicology. The investigation identified five categories of billing improprieties and errors that resulted in the Vermont Medicaid program making overpayments to the company. Physicians Toxicology cooperated with the investigation.

Urinalysis drug testing is an important tool for clinicians in the treatment and monitoring of drug addiction and chronic pain. Costs to the Medicaid program for urinalysis testing have risen sharply over the past several years. Eliminating improper and unnecessary testing will ensure that these services remain available and affordable for Vermont Medicaid recipients.

Under the settlement agreement, Physicians Toxicology repaid $73,648 to the Vermont Medicaid program and agreed to take the necessary measures to ensure future compliance with the Medicaid rules and guidelines related to urinalysis testing. The Medicaid Fraud and Residential Abuse Unit was assisted by the Program Integrity Unit of the Department of Vermont Health Access in obtaining this settlement

VT AG: Sep 18, 2014