Sens. Probe Cigna, Quest, Others Over Lab Kickbacks

Law360, New York (November 8, 2011, 9:24 PM EST) -- Sens. Chuck Grassley, R-Iowa, and Max Baucus, D-Mont., launched an investigation Tuesday of Cigna Corp., Quest Diagnostics Inc. and other health insurance and laboratory giants over an illegal discounting scheme they said could be contributing to fraud in government programs.

The senators told Cigna, Laboratory Corp. of America Holdings, Aetna Inc., UnitedHealth Group Inc. and Quest in a letter Tuesday that they had received reports that the companies might practice the discount arrangement known as a "pull-through" — in which labs give insurers illegal discounts in exchange for...
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