Lenexa lab under scrutiny for possible price gouging of COVID-19 tests

COVID-19 KC updates
Posted at 2:43 PM, Dec 21, 2020

KANSAS CITY, Mo. — Kansas officials are looking into whether a Lenexa lab inflated prices for some COVID-19 tests, the state confirmed Monday.

A spokesperson for the Kansas Insurance Department told 41 Action News that GS Labs, 15729 College Blvd., is cooperating with the department and answering questions.

In a letter sent on Dec. 16, the department said it had become aware of “concerning behavior” related to COVID-19 testing in the state, specifically that a provider in Lenexa had listed a cash price of nearly $1,000 for a PCR test.

According to the department, the average price for that test is less than $185.

The letter included a footnote with a link to the GS Labs website detailing the costs for COVID-19 tests. On Monday afternoon, the price for a PCR test was listed at $699.

“If these astronomical costs charged by unscrupulous providers are borne by the health plans and insurers without recompense, consumers will ultimately pay more for their health care as health insurance costs will rise,” Justin McFarland, general counsel for the Kansas Insurance Department, said in the letter.

The department said it plans to collect further data and cooperate with law enforcement and other authorities.

Kansas also is looking at another provider for possible price gouging, though it said that provider “was not in the public domain and is being looked into further.”