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Oct 11, 2013 by |

Quest Diagnostics Accused of Defrauding Medicaid in Whistleblower Lawsuit


A recent whistleblower lawsuit accused Quest Diagnostics of defrauding a state Medicaid program.  Quest Diagnostics is an operator of medical laboratories in the United States.  The whistleblower lawsuit alleges that Quest diagnostics defrauded a state Medicaid program by billing it at higher rates than other customers.  California whistleblower and securities attorneys say that false claims cost taxpayers millions of dollars each year.

According to the lawsuit, false claims were made for payments of Medicaid covered laboratory tests by representing that the fees being charged were not greater than the maximum fee payable pursuant to state regulation.  Under the law, companies are required to provide their services to Medicaid at the same rate billed to other customers.  The lawsuit alleges that Quest Diagnostics billed Medicaid as much as $10.42 for an automated hemogram which is a standard blood test that it bills to other customers at a rate of $1.42.  California whistleblower and securities attorneys say that small overpayments can add up quickly.

In a similar California case, Quest diagnostics agreed to settle the case for $241 million dollars.  At that time, the settlement was the largest ever under the California False Claims Act. California whistleblower and securities attorneys say that the public can help taxpayers to recoup lost funds by coming forward when they have direct knowledge of fraud against the government.

Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases.  If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email

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