Kentucky could get $2M in settlement over unnecessary drug testing

LOUISVILLE, Ky. (WDRB) -- Kentucky could be getting $2 million in a settlement over unnecessary drug testing.

Kentucky Attorney General Daniel Cameron, the U.S. Department of Justice and several states' attorneys general settled a case with MD Labs.

Court documents allege that MD Labs performed two different drug urine tests, knowing they were irrelevant for most health care providers.

The case alleges that the company then billed Medicaid for the tests. The settlement said this all happened from 2015 through 2019.

MD Labs has to pay at least $11.6 million to resolve the allegations. Kentucky will get at least $1.5 million, and could get more than $2 million.

"Fraudulently billing Medicaid for unnecessary medical services harms Kentucky Medicaid beneficiaries and taxpayers," Cameron said in a statement. "We joined the DOB and a coalition of attorneys general in this settlement to halt these unscrupulous business practices and to ensure that funds are returned to Kentucky's Medicaid program."