MONTPELIER, Vt. - Vermont Attorney General William Sorrell said a laboratory testing company overcharged his state's Medicaid program and recently announced the settling of those charges.

Rhode Island-based Dominion Diagnostics will pay $1 million to the state, two years after giving New Hampshire $385,000 to resolve similar charges.

Vermont said Dominion, which provides urinalysis for drugs of abuse, overcharged it from Jan. 2001-June 2003.

"We spend huge sums of Vermont and federal tax dollars on our Medicaid system," Sorrell said. "Instances of overcharging can easily run into the millions. We need to be ever more vigilant in monitoring these programs to assure that we're receiving quality services at a fair price."

The settlement was announced June 7. An attorney for Dominion said the company denied any wrongdoing, according to a report by The Associated Press.

Mark McSally instead called it "a dispute over billing methodology related to technical scientific issues" over the type of tests being performed.