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California lab to pay $4.8 million to settle claims it overbilled Connecticut Medicaid program

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Santa Rosa-based Redwood Toxicology Laboratory provides urine drug testing services for substance abuse patients enrolled in the Connecticut Medicaid program. The government claims the lab violated a Connecticut regulation, known as the “Most Favored Nation” regulation, which guarantees that labs bill the state at the lowest price they charge other third party clients for similar tests.


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