Medicare fraud update · 7 min read

CMS Reports $1.6 Billion in Medicare Lab Fraud Actions: How to Check Your Claims

CMS reported $1.6 billion in enforcement actions involving suspect Medicare laboratory billing. Learn what to look for on your claims and how to report a concern.

Published by: Medicare Choose

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Official sources and further reading · Editorial policy

CMS announced new laboratory-fraud enforcement results

On August 28, 2026, the Centers for Medicare & Medicaid Services reported more than $1.6 billion in enforcement actions involving potentially improper Medicare laboratory payments. CMS said the work included revoking 157 laboratory providers, suspending payments, recovering overpayments, and referring cases to law enforcement.

The announcement is a program-wide update, not a finding that every laboratory claim is fraudulent or that one beneficiary owes part of the $1.6 billion. CMS described several kinds of suspected misconduct, including billing for services that were not provided, medically unnecessary tests ordered without an established provider relationship, and billing a more expensive service than the one performed.

The $1.6 billion includes money stopped, recovered, and protected

CMS did not describe the full amount as money already paid and permanently lost. Its total included $732 million in savings tied to provider revocations, more than $500 million in potentially fraudulent payments halted through payment suspensions, over $276 million recovered from identified overpayments, and $127 million prevented after law-enforcement referrals.

That distinction matters when reading a large enforcement headline. The figures describe different government actions at different stages of review. They do not change a beneficiary’s coverage by themselves, and they do not mean that a legitimate test ordered for your care is suddenly excluded from Medicare.

Start by checking whether you recognize each laboratory claim

Compare every laboratory entry with your calendar, appointment records, and any test results you received. Check the provider or laboratory name, date of service, type of test, amount charged, amount Medicare or your plan paid, and any amount listed as your responsibility. A laboratory name may be unfamiliar because a doctor’s office sent a sample elsewhere, so an unfamiliar name is a reason to verify—not proof of fraud.

People with Original Medicare can review their Medicare Summary Notices and can use a secure Medicare.gov account to see claims after Medicare processes them. People with Medicare Advantage should review the explanation of benefits or claims history from their plan. Keep the statement, relevant receipts, and notes from any calls you make.

Watch for tests you did not receive or did not discuss with a clinician

A claim deserves a closer look if you never gave a sample, never received the listed test, do not recognize the ordering clinician, or see repeated tests that you were not expecting. Also question a bill after someone offered a “free” cheek swab, cancer screening, drug test, or other laboratory service in exchange for your Medicare number.

The HHS Office of Inspector General has specifically warned about genetic-testing schemes in which marketers offer free screenings or cheek swabs and seek Medicare information for fraudulent billing or identity theft. A trusted treating clinician should determine whether genetic testing is appropriate and order it when medically necessary.

Verify a questionable charge before assuming what happened

Medicare advises calling the provider’s office when a receipt or statement appears incorrect. Use a phone number you already trust, such as the number on the practice’s official website or prior paperwork, rather than a number supplied in an unsolicited call or text. Ask what test was ordered, who ordered it, when it was performed, and why the listed laboratory billed Medicare.

An office may identify a correct claim recorded under a separate laboratory’s name, or it may confirm an error that needs correction. Do not sign new forms, pay an unexpected caller, or provide your Medicare or Social Security number simply because someone claims a billing problem must be fixed immediately.

Report unresolved concerns through official channels

If you still suspect fraud, call 1-800-MEDICARE (1-800-633-4227) or use the HHS Office of Inspector General’s online fraud-reporting form linked from Medicare.gov. Medicare says people with a Medicare Advantage or Medicare drug plan can also call the Investigations Medicare Drug Integrity Contractor at 1-877-7SAFERX (1-877-772-3379).

Have useful details ready, including your name and Medicare number, the provider or supplier name and identifying information shown on the claim, the service and date, the amount approved or paid, why you believe the claim may be improper, and any contact you already had with the provider. Share sensitive information only through a verified official channel.

Protect your Medicare number after a suspicious contact

Treat your Medicare number like a credit-card number. Medicare.gov says not to share it with anyone except your doctors or other people you know should have it, such as an insurer acting on your behalf, Medicare personnel, or a State Health Insurance Assistance Program counselor. Medicare will not call to sell you something and asks for personal information by phone only in limited situations.

If you think your number was exposed, check new claims regularly and call 1-800-MEDICARE. Do not accept money, gifts, or supposedly free care in exchange for the number. A secure Medicare.gov account can help people with Original Medicare see processed claims sooner than waiting for a mailed quarterly notice.

Do not avoid a medically necessary test because of a fraud warning

Medicare Part B covers medically necessary diagnostic laboratory tests when an appropriate health care provider orders them and Medicare’s other coverage requirements are met. The CMS enforcement announcement targets suspect billing practices; it is not advice to refuse laboratory care recommended by a clinician who knows your health history.

Before a non-urgent test, ask who ordered it, which laboratory will perform it, whether the laboratory accepts Medicare assignment or is in your Medicare Advantage network, whether prior authorization applies, and what you may owe. Discuss medical questions with your treating clinician and coverage questions with Medicare or your plan.

Official sources and further reading

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