Kentucky wins $2.65 million for Medicaid in settlement

FRANKFORT, Ky. (AP) — Kentucky has recovered $2.65 million from a San Diego-based urine drug testing company for fraudulently billing the state’s Medicaid program.

Attorney General Jack Conway announced the settlement with Millennium Health on Wednesday. Conway said the company would cause doctors to order an excessive number of unnecessary urine tests, which were then charged to Medicaid.

The company also gave free urine testing cups to doctors but only if the doctors returned the specimens to the company for hundreds of dollars’ worth of testing. Conway said that violated Kentucky’s anti-kickback laws, which bans companies from giving anything of value to a doctor in exchange for referrals.

Kentucky was one of 48 states involved in the lawsuit. The total settlement was $256 million and included the District of Columbia and the federal government.