A serious Kansas Metropolis medical insurance supplier is accusing a medical laboratory of value gouging for COVID-19 assessments, charging roughly 10 instances greater than different corporations.
Blue Cross Blue Shield of Kansas City filed a federal lawsuit Wednesday within the Western District of Missouri looking for a declaratory judgment that might stop the insurance coverage supplier from having to pay for testing carried out by the corporate, GS Labs. Blue Cross Blue Defend introduced the lawsuit in a statement Wednesday, saying the corporate is “not working with us in good religion.”
GS Labs relies in Omaha, Nebraska. The corporate says on its website that the lab started providing COVID-19 assessments in 2020, “with a mission to supply handy and fast testing choices.” It advertises costs round $380 for a primary COVID-19 take a look at and as much as $979 for extra superior assessments.
Based on the lawsuit, Blue Cross Blue Defend has obtained 10,000 claims for COVID-19 speedy antigen testing. The take a look at gear is usually obtainable for a wholesale buy value of beneath $20 apiece, based on the lawsuit.
Different lab take a look at suppliers cost as little as $35 to manage assessments, the swimsuit alleges.
In complete, GS Labs has submitted over $9.2 million of “inflated and in any other case improper claims” to the insurance coverage supplier, the lawsuit alleges.
In December, the Kansas Insurance Department started investigating a lab in Lenexa operated by GS Labs in regard to its higher-than-average costs. In a letter, Justin L. McFarland, the state company’s normal counsel, famous the Lenexa lab was charging a $1,000 money value for a take a look at that averages round $185.
“If these astronomical prices charged by unscrupulous suppliers are borne by the well being plans and insurers with out recompense, shoppers will finally pay extra for his or her well being care as medical insurance prices will rise,” McFarland wrote.