Genetic Testing Accounts for $3.6 Billion in Medicare Lab Spending—How to Spot Fraud

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Genetic Testing Accounts for .6 Billion in Medicare Lab Spending—How to Spot Fraud

By 2024, genetic tests accounted for 43% ($3.6 billion) of Medicare Part B laboratory costs, according to federal data, much of which is linked to fraudulent programs using “free” test offers to target adults. Reviewing Medicare statements and never sharing your number with unsolicited callers are key ways to avoid becoming a victim. Inna Dodor/Shutterstock

A recent federal report indicated that genetic testing has driven the largest increase in Medicare Part B laboratory spending, reaching $3.6 billion by 2024. The US Department of Health and Human Services’ Office of the Inspector General (HHS OIG) also found that genetic testing represented only about 5% of all Medicare Part B laboratory tests performed while accounting for the federal accounting of 4%. keep checking this site.

Many of these operations are linked to fraudulent schemes that target Medicare beneficiaries with offers of “free” genetic testing for cancer risk, compliance with medications, or other conditions. These scams not only drain Medicare resources but can also expose seniors to identity theft and an unexpected financial headache if wrongful charges go through. Here’s what people need to know about how to spot fraud and protect themselves.

Genetic Testing Scams Often Begin with Unsolicited Contact Targeted at Seniors

Scammers often use telemarketing calls, direct mail, or appearances at senior centers, health fairs, and community events to offer “free” genetic testing for cancer, dementia, or drug addiction. They use fear-based messages about undiagnosed conditions to pressure Medicare beneficiaries into giving up their Medicare number and personal information immediately.

Once they have that information, the fake labs bill Medicare for expensive tests that were never medically necessary or properly ordered by a doctor. In many documented cases, beneficiaries never even receive the results or realize the test was performed until they review their Medicare statements.

Medicare generally covers genetic testing only when it is deemed medically necessary and ordered by a treating physician as part of the diagnosis or management of a specific medical condition, not just because someone is offering a free test at a public event.

Several Clear Red Flags Can Help You Spot Genetic Testing Scams Quickly

Any offer of “free” genetic testing that comes through an unsolicited phone call, email, or pop-up at a public event should immediately raise suspicion. Legal genetic testing is almost always ordered by your doctor based on specific symptoms, family history, or medical needs rather than being aggressively marketed to the general public.

Scammers often use sounding company names or logos and may pressure you to act quickly or share information before you consult your doctor. If someone asks for your Medicare number over the phone or at an event without a prior doctor’s referral, that’s a big warning sign.

Another warning sign is being told that your doctor has “already approved” the test when you never discussed it with them. Scammers often work with Medicare or your doctor to create a false sense of legitimacy. Regularly reviewing the Medicare Summary Notice (MSN) may reveal unexpected genetic test charges that indicate possible fraud.

Federal Data Shows How Genetic Testing Fraud Raised Medicare Costs

According to a January 2026 report from the Office of Inspector General of the US Department of Health and Human Services, Medicare Part B spent $8.4 billion on laboratory testing in 2024, with genetic testing alone accounting for $3.6 billion or 43% of that amount. The use of genetic testing has increased even as the number of lab tests overall has decreased, raising concerns about medically unnecessary or fraudulent claims.

The HHS OIG noted that “Part B spending on laboratory testing has been shifting toward genetic testing,” making this area a continuing focus for Medicare fraud and oversight investigations.

Previous enforcement actions by the Department of Justice have found schemes involving hundreds of millions (and in some cases over a billion dollars) in improper genetic testing and telemedicine billing. These cases often involve labs paying a certain fee or using deceptive marketing to generate large claims without proper documentation or physician involvement.

You Can Take Quick Steps to Reduce Your Exposure to Scams

Never share your Medicare number or personal health information with anyone who contacts you unsolicited, whether by phone, mail, or in person at public events. Pursue genetic testing only when your doctor recommends it as part of diagnosing or treating a specific medical condition, and make sure the testing laboratory is properly registered with Medicare.

Review your Medicare Summary Notices carefully each month and report any test payments you didn’t approve or receive from Medicare right away. It’s not a bad idea to consider adding extra protection by monitoring your credit reports and signing up for Medicare fraud alerts if they’re available in your area.

Knowing What to Do After a Suspicious Communication

If you suspect you have been targeted by a genetic testing scam, contact Medicare immediately at 1-800-MEDICARE to report the incident and ask about the next steps to litigate. You can also reach out to your local Senior Medicare Patrol (SMP) program, which provides free, confidential help with Medicare fraud issues and can guide you in reporting.

Keep records of any phone calls, emails, or interactions with scammers, including dates, names, and what information was shared. If identity theft is involved, file a fraud alert or freeze with the major credit bureaus and consider filing a report with the Federal Trade Commission.

Staying Aware of Genetic Testing Scams

Recent federal data shows that genetic testing has become one of Medicare’s fastest-growing laboratory expenses, making it an attractive target for fraudsters preying on the elderly. Fortunately, self-defense does not require medical knowledge. It starts with treating unsolicited offers with skepticism, confirming recommendations with your doctor, and reviewing all Medicare Summary Notices for unusual charges. Reporting suspicious activity quickly not only protects your Medicare benefits but also helps investigators stop schemes before they affect thousands of other beneficiaries.

Have you or someone you know received an unexpected offer of genetic testing through Medicare, or seen strange charges on a Medicare statement? What steps have you taken to protect your information from potential fraud? Share your experience or questions in the comments.