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

In 2024, genetic tests accounted for 43% ($3.6 billion) of Medicare Part B laboratory spending, according to federal data, much of it linked to fraudulent schemes using “free” test offers to target seniors. 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 revealed that genetic testing drove a massive spike in Medicare Part B laboratory spending, reaching $3.6 billion in 2024. The U.S. Department of Health and Human Services Office of the Inspector General (HHS OIG) also found that genetic tests represented only about 5% of all Medicare Part B laboratory tests performed while accounting for 43% of total laboratory spending, illustrating why federal investigators continue to scrutinize this area closely.

Much of this surge has been linked to fraudulent schemes that target Medicare beneficiaries with offers of “free” genetic tests for cancer risk, medication compatibility, or other conditions. These scams not only drain Medicare resources but can also expose seniors to identity theft and unexpected financial headaches if improper charges slip through. Here’s what people need to know about how to spot fraud and protect themselves.