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November 25, 2019 Intelligence: Late Breaking Lab News

Intelligence Late & Latent News

Medicare lab test price cuts mandated by the Protecting Access to Medicare Act (PAMA) are eroding the finances of urology groups that do in-office clinical laboratory testing. In the November issue of Urology Times, urologist Robert A. Dowling, MD, wrote a news story that identified the cuts in Medicare Part B prices for the lab tests

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Judge Issues Split Ruling on Quest’s Motion to Dismiss

Lawsuit filed by uninsured patients alleges Quest overcharged them for their clinical laboratory tests

CEO SUMMARY: There have been significant developments in the case against Quest Diagnostics for allegedly overcharging uninsured patients for clinical laboratory tests. This second section covers the federal judge’s most recent decisions, along with an assessment of how the plaintiffs and the defendent each received favorable rulings.
First of Two Parts: Section Two
IN THE FEDERAL LAWSUIT

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Lawsuits Allege LabCorp, Quest Overcharged Uninsured Patients

Separate cases in federal courts allege uninsured consumers are overcharged

CEO SUMMARY: Court documents filed in U.S. District courts in New Jersey and North Carolina provide details about how each of the two lab companies set lab test prices differently—as much as 10 times higher—for cash-paying patients than for patients who have Medicare, Medicaid, or commercial health insurance plans. In court filings, plaintiffs allege that

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Lab Benefit Managers Want to Help Health Plans

Five LBMs expect steady growth as health insurers seek help managing laboratory test costs and quality

CEO SUMMARY: Laboratory benefit management companies that offer a range of services to health insurers are gaining influence over clinical lab testing in important ways. On behalf of health insurers, LBMs will select labs for a payer’s network, then manage that network. They also manage claims and lab-test utilization, often reviewing medical necessity. A primary

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ICD-10 Gives Payers More Data About Lab Claims

Detailed procedure codes give health plans more reasons to question claims, deny coverage

CEO SUMMARY: Evidence shows that adoption of ICD-10 diagnosis codes in 2015 made it possible for health insurers to track clinical laboratory testing more closely, ask more questions about those tests, and deny coverage. Increased detail about each patient’s condition has led to increased demands for medical-necessity documentation and to denied payments of as much

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Prediction of ICD-10 as Negative for Labs Comes True

IMPLEMENTATION OF ICD-10 DIAGNOSIS CODES in the United States happened on Oct. 1, 2015. At that time, a national laboratory association predicted that use of ICD-10 codes would cause Medicare Administrative Contractors (MACs) to pay labs less often and with lower reimbursement.

The Dark Report agreed with this prediction and published the warnings of the American Clinical

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Don’t Be at the Mercy of the Tumultuous Healthcare Revolution

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