Attorney General Stein reaches $3.6 million Medicaid settlement with lab company

RALEIGH, N.C. (WITN) – State Attorney General Josh Stein says he has reached a $3,653,858 settlement with Radeas, LLC, a South Carolina clinical laboratory company headquartered in Wake Forest.

Stein says the settlement surrounds allegations that Radeas submitted false claims for some urine drug tests to the North Carolina Medicaid program. He says the funds from the settlement will go to reimburse the Medicaid program and to North Carolina schools.

“Health care companies and labs must be responsible stewards of taxpayer dollars,” Stein said.

The attorney general says that between Jan. 1, 2016, and Sept. 30, 2021, Radeas allegedly offered health care providers the option to order two types of urine drug tests at the same time.

“A presumptive drug test detects the general presence of a substance and a definitive drug test determines the precise amounts of a substance,” Stein’s office says.

WITN is told that Radeas then performed both tests on the same sample, but doing so is not medically necessary, and definitive drug tests are generally done at a later time after a presumptive drug test has already been finished.

Stein says that Radeas allegedly conducted both tests simultaneously without supporting clinical documentation, in violation of Medicaid policy, and was reimbursed for Medicaid funds it was not entitled to.

The attorney general’s office makes clear that the civil claims resolved in this settlement are allegations only and no judicial determination or admission of liability has been made.

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