Nebraska settles with companies over overpriced COVID-19 tests Clio

Nebraska Attorney General Hilgers announced a $4.87 million multi-state settlement with GS Labs, resolving allegations that the testing company overcharged patients, illegally charged administrative fees and failed to provide timely COVID-19 test results.

The multi-state coalition investigated a number of issues with GS Laboratories’ testing practices nationwide from 2020 to 2022, including:

• GS Labs intentionally inflated the “cash price” of COVID-19 testing, sometimes as high as $380 per test and close to $1,000 for multiple panels, to justify overcharging insured patients. Although GS Labs offered “discounts” on these “cash prices” to patients who actually paid cash, nearly 30,000 patients paid significantly more than the market price for COVID-19 testing.
• For hundreds of thousands of patients, GS Labs guaranteed test results within three days, but fell short of that promise, sometimes taking a week or more to get test results to patients.
• Despite advertising that insured patients had no out-of-pocket costs, the company charged approximately 70,000 patients an administrative fee of up to $49 per test.

“Companies that take advantage of consumers during difficult times during the pandemic need to be held accountable. GS Labs is significantly charging Nebraskans for coronavirus testing. I am proud of the work our office has done with our partner states to negotiate solutions for consumers,” said Attorney General Mike Hilgers.

Under the terms of today’s settlement, GS Labs will pay $3,628,718.34 to patients, including $1,843,375.99 for cash-paying patients who were overcharged for tests, $1,749,568.35 for patients who were charged administrative fees, and $33,692 for cash-paying patients who did not receive test results within three days. Nebraskans harmed by GS Labs’ testing practices will receive $1,113,386.60 in compensation through the settlement.

Source: Nebraska Attorney General’s Office