Lab Tests Face Revaluation, Cuts Under New CMS Proposals

CMS is proposing a comprehensive review process to ensure test payments account for changes in technology. The effort would likely lead to pay reductions in many instances to address new efficiencies in the lab. In addition, double-digit cuts in lab payments are proposed in the agency’s 2014 physician fee schedule draft.

CMS is proposing to perform a wholesale review and revision of laboratory payments based on the impact of changes in lab technology. The review would likely lead to payment reductions in many cases, according to CMS, which would come on top of a 26 percent pay cut proposed for clinical lab facilities for 2014.

Both the near-term cuts and the proposal for the comprehensive review, which won’t start impacting payments until 2015 and will take years to complete, come in CMS’ 2014...

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