Rutledge, Other Attorneys General, Reach Settlement with Millennium Health
December 1, 2015
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge, joined by 48 other States and the District of Columbia, today announced that Arkansas will receive $121,568.64 as part of a $256 million settlement with Millennium Health, formerly Millennium Laboratories, to resolve alleged violations of the False Claims Act for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug and genetic testing and for providing free items to physicians who agreed to refer expensive laboratory testing business to Millennium. Millennium, headquartered in San Diego, is one of the largest urine drug testing laboratories in the U.S. and conducts business nationwide.
“It is horrible to think that patients would be subjected to tests because one of the largest drug testing laboratories in the U.S. wants to increase its profit,” said Attorney General Rutledge. “Companies who take advantage of Arkansas patients and steal from Medicaid and Medicare will not be tolerated.”
The States alleged that Millennium caused physicians to order excessive numbers of urine drug tests, which instead of being tailored to individual patients were standing orders that failed to consider an individualized assessment of each patient’s needs. This practice violated federal health care program rules that limit payment to services which are reasonable and medically necessary for the treatment and diagnosis of a patient’s illness or injury. The States also alleged that Millennium violated the Stark Law and the Anti-Kickback Statute, which generally prohibit laboratories from giving physicians anything of value in exchange for referrals of tests.
As part of the settlement, Millennium has agreed to pay $227 million to resolve False Claims Act allegations that they systematically billed federal health care programs for excessive and unnecessary urine drug testing from Jan. 1, 2008, through May 20, 2015. Millennium has also agreed to pay $10 million to resolve False Claims Act allegations that it submitted false claims to federal health care programs from Jan. 1, 2012, through May 20, 2015, for genetic testing that was performed routinely and without an individualized assessment of need.
In connection with the False Claims Act, Millennium has also entered into a corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General. In addition, Millennium will pay $19.2 million to the Centers for Medicare and Medicaid Services to resolve certain administrative actions related to Millennium’s urine drug test billing practices.
A team representing the National Association of Medicaid Fraud Control Units conducted settlement negotiations with Millennium Health on behalf of the States. Team members included representatives of the Florida, Georgia, North Carolina, New York and Washington Medicaid Fraud Control Units. The States coordinated their investigation in conjunction with the Department of Justice Civil Division’s Commercial Litigation branch and the U.S. Attorney’s Office of the District of Massachusetts.