Medical testing companies' Medicare deal scrutinized
Researchers also fear doctors may be ordering tests that don't need to be performed so they can receive kickbacks from insurers.
Sens. Max Baucus , D-Mont., and Chuck Grassley , R-Iowa, have asked five major health care companies — Cigna, Laboratory Corp. of America, Aetna, UnitedHealth Group and Quest Diagnostics — to send copies of lab service agreements, contract information and corporate communications, including documents provided in recent court cases relating to the practice.
Baucus is the committee chairman and Grassley its ranking Republican.
Cigna and UnitedHealth said they have received the letters and are reviewing them, and the other companies have informed Grassley's office they have also received the letters.
"We treat such requests seriously, and plan to cooperate," Quest spokeswoman Wendy Bost said.
Called "pull-through," laboratories sign contracts with insurers offering extremely low rates for a medical test in exchange for the insurers verbally agreeing that their physicians will send all of their Medicare and Medicaid cases to those laboratories.
Earlier this month, the state of California settled with Quest for $241 million and LabCorp for $49 million after a whistle-blower lawsuit accused Quest of charging California's Medicaid five times more per test than it did other customers. A similar case in New York is under appeal after a judge dismissed the case because a plaintiff released confidential information.
"The inspector general has raised a flag and recent court cases raise concerns," Grassley told USA TODAY.
Andrew Baker, a whistle-blower who refused to participate in the alleged practice and eventually lost his business, said the issue needs to be raised to the national level.
"The practice is blatant manipulation of Medicare to grow your market," Baker said. "We're talking billions of dollars per year.
Provider Cigna Health Insurance - News
Max Baucus, D-Mont., and Chuck Grassley, R-Iowa, have asked five major health care companies — Cigna, Laboratory Corp. of America, Aetna, UnitedHealth Group and Quest Diagnostics— to send copies of lab service agreements, contract information and
Cigna /quotes/zigman/222255/quotes/nls/ci CI +1.60% today announced that it has joined Hero Health Hire, a coalition of companies and other health care concerns that are united under the common goal of employing wounded veterans.
Cigna Corporation's operating subsidiaries in the United States provide an integrated suite of health services, such as medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance.
All products and services are provided exclusively by such operating subsidiaries and not by Cigna Corporation. Such operating subsidiaries include Cigna Health and Life Insurance Company, Cigna Life Insurance Company of New York, Connecticut General
Most of the money to carry out the PR and lobbying work of the Health Benefits Coalition would come from a handful of big insurance firms and their trade groups. I know this because I attended many meetings of the coalition as CIGNA's representative at
So happy Cigna is no longer my health insurance provider. Ugh!
Global Health Insurance | Cigna Purchased 
Global Health Insurance | Cigna Purchased HealthSpring Medicare Provider In $3.8 Billion Deal 
Global Health Insurance | Cigna Purchased HealthSpring Medicare Provider In $3.8 Billion Deal 
Global Health Insurance | Cigna Purchased HealthSpring Medicare Provider In $3.8 Billion Deal