Iowans Can Claim Restitution in COVID Testing Lab Settlement

Iowans who were overcharged for COVID-19 tests or waited too long for their results can now claim their share of a $3.6 million multistate settlement. Iowa joined a coalition of 18 states in holding GS Labs accountable for deceptive billing practices that fleeced patients during the pandemic.

How GS Labs Overcharged Patients

From 2020 through 2022, GS Labs intentionally advertised inflated cash prices for its COVID-19 tests. Some patients faced charges as high as $380 per test, or nearly $1,000 for a multi-panel test. The lab used these inflated prices to justify overcharging patients who had insurance coverage.

While GS Labs offered discounts to cash-paying patients, roughly 30,000 individuals nationwide still paid well above the market rate. Additionally, the company promised patients with insurance that they would face no out-of-pocket costs. Despite that promise, the lab slapped roughly 70,000 patients with unexpected administrative fees of up to $49 per test.

Patient frustrations did not stop at the bill. GS Labs guaranteed test results within three days, but hundreds of thousands of patients waited more than a week for their answers during the height of the pandemic.

What the Settlement Means for Iowans

The 18-state coalition, co-led by Washington, Kansas, Minnesota, and Nebraska, secured $3.6 million in restitution. The funds are broken down to compensate victims fairly. Cash-paying patients who were overcharged for testing will receive $1.8 million. Patients who were hit with improper administrative fees will share $1.75 million. Another $34,000 is set aside for cash-paying patients who did not receive their results within the promised three-day window.

Washington Attorney General Nick Brown, whose office co-led the investigation, highlighted the importance of holding businesses accountable.