A lawsuit filed by Hunter Laboratories LLC, a small Bay Area lab, alleges that seven companies, including medical testing giant Quest Diagnostics, have overcharged the State of California by more than 500% for some procedures. It’s said this overbilling has cost the state hundreds of millions dollars. State Attorney General Jerry Brown revealed the details of the civil lawsuit at a news conference last month. The state launched its investigation three years ago into the alleged overbilling. The suit alleges that the state Medi-Cal program has been overcharged by the seven labs by as much as $500 million over the last 15 years. Hospitals and doctors are alleged to have entered into agreements with large lab companies and benefited greatly at the expense of taxpayers.
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