Pa.-based lab overcharged NJ Medicaid program, owes state $7.3M, audit finds

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New Jersey’s comptroller says a Pennsylvania-based company must repay more than $7 million for overcharging Medicaid to process urine tests. The audit alleges Atlantic Diagnostic Laboratories tried to charge New Jersey Medicaid more than $1,000 to process those tests, while charging others as little as $2. Medicaid paid out between $63 and $180, leading to an over-payment. Earlier this year, the company’s CEO acknowledged the errors and agreed to repay nearly $3 million. The comptroller says they owe $7.3 million.