The Office of the State Comptroller (OSC) released an audit report finding that Atlantic Diagnostic Laboratories (ADL) regularly overcharged New Jersey’s Medicaid program for urine drug testing services and should repay the state Medicaid program $7.3 million. OSC’s Medicaid Fraud Division examined a sampling of claims from January 2015 through June 2018 and found ADL violated Medicaid regulations when it charged Medicaid as much as $1,035 per drug test while charging other payers as little as $2.38 for the same test. Medicaid paid ADL between $63.40 and $180.40 for these same services. ADL also improperly billed for tests that the physician or provider had not ordered or for which ADL lacked sufficient documentation, OSC found.
