State Settles With Burlington Labs Over Medicaid Fraud

Oct 12, 2016

Attorney General William Sorrell says his office has reached a settlement with Burlington Labs, an independent toxicology lab accused of Medicaid fraud.

Under the settlement announced Monday, Burlington Labs will pay $6.75 million dollars to settle potential claims under the Vermont False Claims Act.

The Attorney General's office investigated Burlington Labs after the company was accused of submitting false claims and receiving overpayments from the Vermont Medicaid program.

The investigation into Burlington Labs looked at its Medicaid claims related to drug screening and confirmatory tests.

The investigation found that from between January 1, 2015 and June 30, 2015, Burlington Labs violated a number of Medicaid rules around these test including varying the charges submitted to Vermont Medicaid depending on the number of drugs tested.

This meant that in 2015, Burlington Labs received more $12 million dollars from the Vermont Medicaid program. By comparison, the company only received about $10 million dollars total from the program during the previous five years.

The settlement allows Burlington Labs to repay the Vermont Medicaid program over a seven-year period.

A press release from the Attorney General’s office states the extended payment terms are “intended to maximize Burlington Labs’ ability to continue operations,fulfill its mission, and properly compensate the Medicaid Program.”

Additionally, the settlement required Burlington Labs to enter in to a Corporate Integrity Agreement with the state. The agreement places stricter compliance measures on the company including an independent review of a sample of its claims for up to five years.