SEATTLE \u2014 Washington residents who paid for COVID-19 tests through GS Labs during the pandemic could soon receive a share of nearly $1 million in restitution under a bipartisan multistate settlement that resolves claims the company overcharged patients and failed to deliver timely results.<\/p>\n
The settlement stems from an 18-state investigation into GS Labs\u2019 nationwide testing practices from 2020 through 2022. <\/p>\n
SEE ALSO | New COVID ‘cicada’ variant spreads to 25 states: What to know<\/a><\/p>\n The coalition, co-led by Washington, found multiple issues, including allegations that GS Labs advertised inflated \u201ccash prices\u201d for COVID-19 tests \u2014 sometimes as high as $380 per test or nearly $1,000 for multi-panel tests \u2014 and used those prices to justify higher charges to insured patients. <\/p>\n While the company offered a \u201cdiscount\u201d from those \u201ccash prices\u201d to people paying out of pocket, the states said almost 30,000 patients still paid much more than the market rate.<\/p>\n The coalition also found that for hundreds of thousands of patients, GS Labs guaranteed test results within three days but did not meet that promise, sometimes taking a week or longer. In addition, despite advertising that patients with insurance would have no out-of-pocket costs, the company charged administrative fees as high as $49 per test to about 70,000 patients, according to the settlement information.<\/p>\n \u201cDuring the height of the pandemic, GS Labs unfairly profited off of Washingtonians just trying to get tested for COVID-19,\u201d Attorney General Nick Brown said. \u201cThis is another great example of how our office vigorously enforces Washington\u2019s consumer protection laws to protect people from deceptive business practices.\u201d<\/p>\n Under the terms of the settlement, GS Labs will pay a total of $3.6 million in restitution to patients in the 18 plaintiff states. That includes $1.8 million for cash-paying patients who were overcharged for tests, $1.75 million for patients who were charged administrative fees, and about $34,000 for cash-paying patients who did not receive test results within three days.<\/p>\n In Washington, more than $987,000 will be available to compensate residents harmed by the company\u2019s testing practices. More than 11,000 people in the state are expected to qualify for restitution, with payments ranging from $5 for people who were improperly charged administrative fees to $200 for people who paid for a COVID test out of pocket.<\/p>\n