NYC HEALTHCARE PROVIDER CARECUBE HIT WITH OWN $300,000 SURPRISE BILL, WILL REFUND WRONGFUL CHARGES FOR COVID-19 TESTS

By Thomas Hughes

July 28, 2023

New York City—A New York City health clinic that was accused of wrongfully charging patients for COVID-19 tests agreed to refund the charges to customers and pay a $300,000 fine to the state, according to a news release Thursday from New York State Attorney General Letitia James.

The company, CareCube, was the subject of dozens of consumer complaints to the attorney general’s office in 2021 from customers who said they received surprise bills after their visits, according to James.

The company operates five primary care locations, including four in Brooklyn and one in the Bronx. It expanded during the pandemic and operated as many as 22 storefront testing clinics throughout the city.

An investigation by the attorney general’s office concluded that patients were billed directly when in-network insurance providers should have been billed. The investigation also found that The company also billed patients $125 for COVID-19 tests performed on children under 18. Asymptomatic patients were also hit with improper charges after being given false information by CareCube.

“CareCube created unnecessary financial burdens for many New Yorkers who were trying to stay safe and healthy at the height of the pandemic,” said James. “This predatory behavior was unjust and illegal, and I am pleased that New Yorkers who were wrongfully charged will get their money back.”

The company neither admitted nor denied the allegations by the attorney general, but agreed to an Assurance of Discontinuance in order to avoid further legal action in this case. ​​CareCube is still facing a $10 million class action lawsuit from customers, related to similar allegations.

Customers who are eligible for refunds will be identified through an independent audit the company agreed to pay for in order to conclude the investigation. Patients eligible for a refund will be sent a check, including 9% interest. 

The tests were performed from March 2020 through July 2023 in Brooklyn, the Bronx, Manhattan and Queens. Anyone charged for a test when an in-network provider should have been charged will be eligible for a full refund, along with anyone who paid a surcharge at a CareCube clinic for a COVID-19 test visit. Anyone affected by the wrongful charges can contact the Office of the Attorney General’s Health Care Bureau online or call 1-800-428-9071.

Assemblymember Robert Carroll, who represents Park Slope, said he personally took complaints to the attorney general after hearing from constituents.

“I saw firsthand people being unfairly charged by CareCube at their site down the block from my district office and received numerous complaints about CareCube from constituents conscientiously seeking tests to help prevent the spread of COVID-19,” Carroll said in a statement.

CareCube did not respond to a request for comment by the time of publication.