UnitedHealthcare to Get $56 Million to Settle Lab Fraud Claims

UnitedHealthCare Insurance Co. will receive more than $56 million in settlement of claims that urinalysis labs engaged in a fraudulent billing scheme.

The agreement, approved by the U.S. District Court for the Western District of Texas July 23, resolves the insurer’s claims that the labs submitted thousands of fraudulent insurance claims for unnecessary urinalysis tests in an effort to defraud commercial insurers, like UHC, out of millions of dollars.

United alleged that Sky Toxicology Ltd., Frontier Toxicology Ltd., Hill Country Toxicology Ltd., Eclipse Toxicology Ltd., Axis Diagnostics Inc., and their related management companies offered kickbacks to physicians for requesting toxicology ...