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CMS proposes $5 billion cut in lab test fees
Modern Healthcare

The CMS will begin paying the same as private insurance rates for clinical diagnostic laboratory tests starting January 1, 2017, according to a proposed rule announced Friday. The move could result in a large cuts in payments to laboratories.

Medicare paid between 18% and 30% more than other insurers for some lab tests, an HHS Office of Inspector General report found.

The agency projects savings of $360 million for clinical diagnostic laboratory tests in 2017 as a result of the change, and a $5.14 billion savings within the first 10 years of the rule’s implementation, according to the proposed rule.