San Diego biotech company admits fraudulent billing, agrees to pay $49 million

A San Diego-based biotech company agreed to pay $49 million to settle allegations it fraudulently billed federal health insurance programs and offered kickbacks to physicians and patients to use its services Thursday, July 23.

Progenity Inc. formerly known as Ascendant MDx Inc. admitted to billing Tricare – which covers military service members and their dependents and the Federal Health Care Employee Benefits Program for clinical tests neither program covered.

The Justice Department said Progenity offered genetic testing for pregnant women that analyzed fetal DNA for fetal chromosomal abnorma...