Skip to content
Shore News Network
  • NJ
    • Jersey Shore News
    • South Jersey News
    • Philadelphia News
    • North Jersey News
    • Ocean County News
    • Monmouth County News
    • Cape May County News
    • Atlantic County News
    • Burlington County News
    • Mercer County News
    • Toms River News
    • Jackson Township News
    • Regional
  • NY
    • New York City News
  • MD
  • PA
  • DE
  • Topics
    • Crime
      • Most Wanted
      • Fire
    • Weird
    • Politics
    • Weather
    • OMG!
    • Traffic
    • Lottery Results
    • Pets
    • US News
    • Politics
    • Weather Reports
    • Weird and Strange News
    • Good News
    • Viral Videos
    • Pets
    • Business News
    • Tech and Gaming
    • Entertainment
    • Food
    • Health and Wellness
    • Travel
    • Schools
    • Sports
    • Top 10 Lists
    • Viral News
    • The Buzz
    • Satire
  • Department of Justice Press Releases

National Laboratory Pays Nearly $4.8 Million to Settle Allegations it Overcharged Connecticut Medicaid

  • DOJ Press
  • March 7, 2022
  • 1:27 pm
National Laboratory Pays Nearly 8 Million to Settle Allegations it Overcharged Connecticut Medicaid

U.S. Attorney Leonard C Boyle, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, and Connecticut Attorney General William Tong today announced that REDWOOD TOXICOLOGY LABORATORY, INC. has entered into a civil settlement agreement with the federal and state governments and has paid nearly $4.8 million to resolve allegations it overcharged the Connecticut Medicaid program for certain laboratory services.

Redwood Toxicology Laboratory (“RTL”), with a headquarters located in Santa Rosa, California, provides laboratory-testing services, specifically urine drug testing services, for substance abuse patients enrolled in the Connecticut Medicaid program.  The government alleges that RTL violated Connecticut’s so-called “Most Favored Nation” regulation (Conn. Agencies Regs. § 17b-262-649), which provides, in essence, that clinical laboratories should not seek payment from Connecticut Medicaid for services at a price that is higher than the lowest price the laboratory charges for the same or similar services from other third parties.  Specifically, the government alleges that RTL regularly accepted payments from Connecticut Medicaid for certain urine drug tests at the rate of $38 per test, while at the same time charging other third parties from $2 to $10.50 for the same or substantially similar urine drug tests.

To resolve the governments’ allegations, RTL agreed to pay $4,797,578, which covers claims submitted to the Connecticut Medicaid program from January 1, 2015, through and including February 24, 2018.

“We are committed to ensuring that public funds used for substance abuse treatment are properly spent, and clinical laboratories that charge government health care programs a higher price than they charge to other providers for the same or similar services will be held accountable,” said U.S. Attorney Boyle. 

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services.  The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

Related News

  • Allegations, connecticut, It, Laboratory, Medicaid, Million, National, Nearly, Overcharged, Pays, Settle, to, uncategorized

Judge Allows Appeal in Chester Bankruptcy Fight Over Water Authority Discovery

Federal Judge Partially Dismisses Inmate Assault Lawsuit Against Nassau County Jail Staff

Retired NJ Police Officer Loses Lawsuit Over Arrest in Gucci Sunglass Theft Case

  • Department of Justice Press Releases
  • About
  • Contact
  • TOS
  • Privacy Policy
  • Ethics Policy
  • Adsense TOS
  • FTC Disclosure
  • Our Team
  • About
  • Contact
  • TOS
  • Privacy Policy
  • Ethics Policy
  • Adsense TOS
  • FTC Disclosure
  • Our Team

Copyright © 2026 Shore News Network – All Rights Reserved

  • Shore Media & Marketing LLC
  • news@shorenewsnetwork.com