Oregonians Can Apply for COVID Test Refunds After GS Labs Overcharge Settlement

The lawsuit against GS Labs has been settled, and Oregonians affected by COVID-19 testing overcharges, unlawful administrative costs, and late delivery of test results by GS Labs can now apply online for refunds.

Refunds Payable After Oregon Settles GS Labs COVID-19 Overcharges

Oregon Attorney General Dan Rayfield confirmed yesterday that a $4.87 million multistate settlement with GS Labs, resolving claims of overcharging and failure to deliver timely COVID-19 test results.

AG Rayfield said, “This settlement puts money back in the pockets of people who were taken advantage of during one of the most stressful periods of their lives.”

The problems with GS Labs’s nationwide testing practices investigated from 2020 through 2022 included:

  • Intentional advertising of inflated “cash prices” for COVID-19 tests (up to $380 per test or nearly $1,000 for multi-panel tests) was used to justify overcharging patients with insurance coverage. Nearly 30,000 patients paid well above market rates for their COVID-19 tests despite the company offering cash discounts.
  • GS Labs guaranteed test results within three days but failed to deliver on its promise, taking a week or more to get results to patients. Hundreds of thousands of patients were affected.
  • Despite advertising that patients with insurance would incur no out-of-pocket costs, the company charged administrative fees of up to $49 per test to about 70,000 patients.

Tidings Data Snapshot

Why COVID Test Prices Mattered
$100Medicare rate for high throughput COVID lab tests in 2020
2 daysTurnaround needed for the full Medicare rate starting in 2021
$75Lower Medicare rate when high throughput results took longer
March 27, 2020Federal cash price posting rule began during the emergency

Sources: CMS COVID diagnostic test payment updates and U.S. Department of Labor CARES Act testing FAQDailyTidings.com

In terms of the settlement, GS Labs will pay $3,628,718 in restitution to patients, including:

  • $1,843,375 for cash-paying patients overcharged for tests
  • $1,749,568 for patients charged administrative fees
  • $33,692 for cash-paying patients who did not receive test results within three days.

Oregon was allocated $142,957 in restitution through the settlement, but Oregonians will need to complete a brief verification process at www.gslabstesting.com to see if they are eligible for a refund.

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