Pennsylvania joins $4.87 million settlement over COVID-19 testing practices

Pennsylvania and a multistate coalition reached a $4.87 million settlement with GS Labs over allegations the company overcharged patients for COVID-19 tests and missed promised result deadlines between 2020 and 2022. Attorney General Dave Sunday announced Wednesday that affected residents may be eligible for restitution through an online program funded by the company.

Why did GS Labs reach a settlement?

A multistate investigation found that GS Labs engaged in questionable billing and testing practices during the pandemic, according to the Attorney General’s Office. Investigators alleged the company advertised inflated cash prices to justify higher charges to insurance providers.

Some cash-paying customers were charged as much as $380 for a single test. Certain multi-panel tests allegedly cost nearly $1,000, which officials said exceeded prevailing market rates.

Did You Know? GS Labs allegedly charged administrative fees of up to $49 per test to approximately 70,000 patients, despite advertising that insured customers would not face out-of-pocket costs.

How did GS Labs fail to deliver test results?

The investigation revealed the company failed to meet its advertised three-day turnaround time for hundreds of thousands of patients. According to officials, some patients waited a week or longer to receive their results.

Attorney General Dave Sunday stated that Pennsylvanians deserve medical testing with integrity and timely results. He noted that patients relied on the company for critical medical information during the pandemic.

Expert Insight: Samantha Carter notes that the gap between advertised turnaround times and actual delivery can create significant risks for patient care. When critical medical information is delayed, it may hinder a patient’s ability to isolate or seek timely treatment, increasing the stakes of operational failures during a public health crisis.

Who is eligible for restitution and how much?

GS Labs will provide $3.6 million in restitution to affected consumers. The settlement allocates $1.8 million for cash-paying patients who were overcharged and $1.7 million for those charged administrative fees.

Attorney General Dave Sunday | Year In Review: Protecting the Vulnerable

More than $33,000 is designated for cash-paying patients who did not receive results within three days. GS Labs will also pay $1.25 million to the multistate coalition, which was led by attorneys general from Washington, Nebraska, Minnesota, and Kansas.

What happens next for GS Labs and affected patients?

Affected Pennsylvanians should receive information from GS Labs regarding how to file claims through a forthcoming online restitution program. This program will be funded by GS Labs and overseen by participating states.

GS Labs is no longer operating and does not currently provide testing services. If the company resumes operations in the future, the settlement requires changes to its sales and advertising practices.

Frequently Asked Questions

What was the total amount of the GS Labs settlement?
The total settlement amount is $4.87 million.

What were the highest alleged charges for COVID-19 tests?
According to the Attorney General’s Office, the company charged up to $380 for a single test and nearly $1,000 for certain multi-panel tests.

Is GS Labs still providing medical testing?
No, the company has stated it is no longer operating.

Do you believe more transparency is needed regarding medical testing costs during public health emergencies?