As most experts predicted, CMS will cut lab test prices deep enough to hurt many labs

CEO SUMMARY: If the draft lab rates that CMS published Sept. 22 for the Clinical Laboratory Fee Schedule for 2018 go into effect Jan. 1 as proposed, then clinical labs will see a cut of 28% in what they get paid for the top 20 most common tests, according to a recent analysis. The rates that CMS proposed were set under the PAMA law’s requirements that CMS collect data on what private health insurers pay labs for clinical laboratory tests and an analysis by Xifin shows that the market-price data collection effort was deeply flawed.

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