A group of patients have filed a class-action lawsuit against Madison, N.J.-based Quest Diagnostics, alleging the laboratory testing company overcharged patients for specific tests not covered by insurance and for exhibiting a lack of transparency regarding pricing, according to a Law360 report.
A complaint lodged in New Jersey federal court March 8 alleged the prices Quest Diagnostics charged consumers for testing were "excessive" and "far above market value" compared to the price insurance companies or the government would pay for the same tests.
Here are five takeaways from the complaint.
1. According to the complaint, Quest was allegedly "not willing to negotiate rates with class members for lab tests that are not covered by insurance" and instead "mailed multiple copies of invoices and threatening letters to patients over a period of months demanding payment, wrongly claiming delinquency, threatening to add the individuals to delinquency lists, threatening debt collection and threatening legal action and liability for costs and expenses."
2. The lawsuit cites nine examples of patients who claim to have been billed excessively for testing not covered by their insurer.
3. In addition to seeking reimbursement for the payments, the plaintiffs also requested Quest be more transparent in their pricing and billing.
4. The complaint states Quest "also makes it as difficult as possible for patients to understand their bills" by aggregating all charges and insurance reductions to identify an aggregate balance the patient must pay. The patients could not "determine, based on the Quest invoice, whether the amounts due from the patients are copays, deductibles or excessive charges based on tests that were disallowed by benefit plans," according to the report.
5. Wendy Bost, a spokesperson for Quest Diagnostics, said in an email statement to Law360 the company "believe[s] the allegations are without merit. Quest Diagnostics complies with all applicable laws and regulations related to laboratory service fees."