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New lab fee schedule may overbill Medicare, Grassley warns
Modern Healthcare

The Senate’s veteran watchdog is taking HHS’ top officials to task over a report that Medicare’s new laboratory fee schedule could cost the federal government billions of dollars more than is necessary.

Senate Finance Chair Chuck Grassley (R-Iowa) this week pressed HHS Secretary Alex Azar and CMS Administrator Seema Verma on a November Government Accountability Office report that questioned the CMS’ methods in calculating the new lab payment rates.

The CMS launched its new fee schedule at the start of last year after a 2014 mandate from Congress to cut the payment rates.  The overhaul was supposed to save Medicare money since the government was paying far more for lab tests than commercial insurers.