PHILADELPHIA, PA — Genexe, LLC, its parent company Immerge, Inc., and executives Jason Green and Jason Gross have agreed to pay $6 million to settle allegations of violating the False Claims Act, the U.S. Attorney’s Office announced on Wednesday. The settlement addresses claims of fraudulent schemes designed to secure Medicare reimbursement for unnecessary genetic testing through kickbacks and other illegal activities.
The alleged misconduct, which occurred from July 2018 to December 2019, involved Medicare claims for CGx and PGx genetic tests that were not medically necessary. Prosecutors claim Genexe and Immerge operated a kickback scheme involving medical laboratories and telemedicine providers to secure reimbursements exceeding $6,000 per test. Independent contractors, many with no medical training, reportedly collected DNA samples from Medicare beneficiaries at public locations and then shipped them to laboratories for testing. Genexe’s revenues came from a portion of Medicare payments made to these labs.
“Genetic testing fraud preys on the fears of patients, and it wastes taxpayer dollars by spending limited funds on medically unnecessary or nonexistent tests,” said U.S. Attorney David Metcalf. “This settlement shows we will work with our law enforcement partners to investigate fraud, waste and abuse.”
The case also resolves whistleblower claims brought under the False Claims Act, with $1.3 million awarded to four whistleblowers who exposed the scheme.
“Medical professionals should only order testing which would benefit individual patient care, not for personal gain,” added Maureen Dixon, Special Agent in Charge for the HHS Office of Inspector General.
Though the settlement does not admit wrongdoing by the defendants, it underscores Medicare’s stringent rules against unnecessary testing and kickbacks. Officials emphasize that enforcement efforts will remain a priority to prevent misuse of federal healthcare funds.
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