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Cancer Genetics, Inc. Pays One Million Dollars to Resolve Improper Medicare Claims
JANUARY 19, 2012

BOSTON - Cancer Genetics, Inc., a New Jersey-based company that previously operated a laboratory in Milford, Mass., has paid the United States one million dollars to settle allegations that it improperly submitted claims to Medicare for chromosome karyotyping studies from July 2003 to March 2005.

The settlement agreement resolves government allegations that Cancer Genetics, Inc. improperly submitted claims to Medicare for chromosome karyotyping studies that were not medically necessary. Chromosome karyotyping studies are used in the diagnosis of various types of cancer. A karyotype is an arrangement of the chromosomes of a single cell for chromosome analysis. The government’s investigation found that Cancer Genetics, Inc. billed Medicare for studies using 20 karyotypes when only two or three karyotypes were medically necessary. As a result of its improper billing, Cancer Genetics, Inc. received a higher amount of Medicare reimbursement than was authorized.

United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, made the announcement today. The case was handled by Assistant U.S. Attorney Jennifer Serafyn and Special Assistant U.S. Attorney John O'Brien of Ortiz's Civil Division.




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