U.S. Department of Justice, Office of Public Affairs, "Signal Diagnostics Agrees to Pay over $20M to Settle False Claims Act Allegations for Failing to Refund Overpayments to the HRSA Uninsured Program" (Sept. 30, 2026)

Summary

Justice Department Office of Public Affairs release of September 30, 2026 announcing that Signal Diagnostics LLC agreed to pay the United States $20.5 million to resolve allegations that it knowingly retained and avoided repaying overpayments from the Health Resources & Services Administration's COVID-19 Uninsured Program for claims submitted for patients who had health insurance. The program reimbursed providers for tests, treatment and vaccines for uninsured individuals between approximately May 2020 and April 2022, and Signal submitted testing claims between October 2020 and March 2022. The United States alleges that an internal audit begun around January 2022 identified ineligible claims for insured people, yet from January 2022 to May 2023 the company improperly avoided repayment. The claims resolved are allegations only.

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Signal Diagnostics LLC (Signal) has agreed to pay the United States $20.5 million to resolve allegations that Signal violated the False Claims Act by knowingly retaining and improperly avoiding its obligations to repay the Health Resources & Services Administration (HRSA) COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the “Uninsured Program”) for overpayments for claims Signal submitted for patients who had health insurance.

“When companies knowingly retain federal healthcare program funds they were not entitled to receive, they violate the public’s trust and the law,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s settlement reflects our commitment to protecting taxpayer dollars and ensuring that providers meet their obligations to return money to which they were not entitled.”

“Providers who receive federal program funds must meet their legal obligation to return money they are not entitled to. By knowingly avoiding repayment of overpayments, Signal Diagnostics undermined the integrity of a program designed to support uninsured patients during a national public health emergency,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “HHS‑OIG will continue to work closely with our law enforcement partners to ensure that entities that misuse federal health care dollars are held fully accountable.”

Between approximately May 2020 and April 2022, the Uninsured Program reimbursed eligible providers for COVID-19 tests, testing-related items and services, treatment, and vaccines performed on uninsured individuals. During the Public Health Emergency, Signal provided COVID-19 tests to individuals at public testing sites and on client sites.

The settlement announced today resolves allegations that from January 2022 to May 2023, Signal knowingly and improperly avoided obligations to repay HRSA for overpayments reimbursed to it from the Uninsured Program. Specifically, between October 2020 and March 2022, Signal submitted claims for COVID-19 testing services and specimen collection to the Uninsured Program. The United States alleges that starting in or around January 2022, Signal initiated an internal audit to determine whether it had submitted ineligible claims to the Uninsured Program. Through the audit, Signal determined that it had submitted claims to the Uninsured Program that were ineligible for payment because the individuals had insurance.

The audit identified errors that caused the submission of claims to the Uninsured Program for people who had insurance, including instance where Signal’s internal system had created multiple profiles for the same individuals with conflicting insurance information and claims were submitted to the Uninsured Program when there were alternative insurances listed on file. From January 2022 to May 2023, Signal continued to conduct its audit and calculated the amount of overpayment received from the Uninsured Program for ineligible claims, and knowingly and improperly avoided its obligation to repay HRSA for those overpayments.

The resolution obtained in this matter was the result of a coordinated effort by Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG. This matter was handled by Civil Division Fraud Section Trial Attorneys Elizabeth J. Kappakas, Lindsay DeFrancesco, and James Nealon.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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