A recent report by the Inspector General indicates that Medicare made suspect payments to more than 1,000 laboratories in California and Florida in 2010.
The total amount of the payout was $1.7 billion dollars. Medicare was suspucious of the claims as the came from ineligible physicians but they paid the claims anyway. In many cases the claims where filed for patients residing more than 150 miles away from the prescribing doctor.
Labs represent less that 2 percent of Medicare spending.
The investigation will be looking into whether anti-kickback laws have been violated.
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