A company that improperly charged patients for COVID-19 tests is facing consequences.
New York Attorney General Letitia James announced Thursday that her office came to an agreement with CareCube, a health care provider that charged for tests that should have been covered by insurance during the pandemic.
CareCube has one location in the Bronx in Mott Haven, according to its website. Otherwise, the company has four locations in Brooklyn.
At the height of the pandemic, the company operated more than 20 COVID-19 testing sites in Manhattan, Brooklyn, Queens and the Bronx. But in 2021, the state Attorney General’s office received dozens of complaints about CareCube’s billing practices.
James’ investigation found that the company improperly charged for COVID-19 tests that should have been free for patients for which CareCube was an in-network provider for.
Additionally, CareCube improperly charged $125 for COVID-19 tests for children under 18, her office found.
CareCube even provided inaccurate information about billing for patients who were asymptomatic who should have received free testing at the time, the attorney general said.
As part of the agreement, the company must retain an auditor to identify all of the patients who were wrongfully charged from March 2020 to July 2023. The auditor will look at all the CareCube locations to see if anyone was wrongfully billed.
After the audit is over, CareCube must send a refund check in the mail — along with 9% interest — on what eligible patients paid.
Those who paid for a COVID-19 test and/or related service that should have been covered when CareCube was an in-network provider in their health plan are eligible for a refund. People who paid a surcharge for office visits for a child’s COVID-19 test will also receive a refund.
The company also has to pay the state $300,000 in penalties.
Patients can expect to hear about a refund within about two months, the Bronx Times has learned.
“CareCube created unnecessary financial burdens for many New Yorkers who were trying to stay safe and healthy at the height of the pandemic,” James said. “This predatory behavior was unjust and illegal, and I am pleased that New Yorkers who were wrongfully charged will get their money back. I thank my colleagues in government for their partnership in protecting consumers and holding CareCube accountable.”
Brooklyn Assemblymember Robert Carrol said he saw people being charged unfairly at a CareCube site down the block from his district office and received numerous complaints about the company.
“It is disgraceful that businesses were profiteering during the city’s hour of need,” he said. “This settlement provides a modicum of relief to those wronged by CareCube, and I hope serves as a warning to other businesses who may unscrupulously seek to take advantage of a crisis.”
The company’s website currently says that COVID-19 tests are covered by insurance with no co-pay or deductible only if the patient has COVID-related symptoms or has been directly exposed to confirmed positive cases and are unvaccinated.
The Bronx Times reached out to CareCube for comment and is awaiting response.
New York City Comptroller Brad Lander said that CareCube’s “deception erodes people’s trust in” medical facilities.
“This sends a strong message to companies that health care fraud in New York will not be tolerated and ensures that the affected individuals get the justice they deserve,” Lander said.
If a patient believes they have been a victim of misleading billing practices, they should contact OAG’s Health Care Bureau online or call 1-800-428-9071.
Reach Aliya Schneider at aschneider@schnepsmedia.com or (718) 260-4597. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes
