US ‘free’ Covid tests allegedly used to bill insurers over $500 million
A former executive at Fast Lab Technologies has pleaded guilty to a healthcare fraud scheme that billed government programs over $500 million for Covid-19 tests that were never performed. The company used insurance information from customers who ordered 'no cost' tests to submit fraudulent claims.
Why it matters
This case exposes significant vulnerabilities in healthcare billing systems and the exploitation of public health initiatives for criminal gain.
Americans who ordered Covid-19 tests advertised as 'no cost' online during the pandemic were allegedly at the centre of a healthcare fraud scheme that generated more than $500 million in false claims, according to the US Department of Justice. Prosecutors said the company behind the tests used customers’ insurance information to bill government-backed healthcare programmes for medical services that were never provided.Hasan “Lucas” Seyhun, 45, of Miami, Florida, pleaded guilty on Wednesday to conspiracy to commit healthcare fraud. Seyhun was the Chief Operating Officer of New York-based Fast Lab Technologies, LLC, which offered people 'no cost' Covid-19 tests that could be ordered through its website during the pandemic.According to court documents, Fast Lab allegedly used the insurance details provided by customers to submit claims for Covid-19 testing services that had not actually taken place. The claims included services linked to antigen tests, saliva samples and PCR testing.
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