Over 30 organizations urged Congress to pass the Saving Access to Laboratory Services Act, which would update Medicare’s payment system for laboratory services. The current system is based on private market data, but significant undersampling has led to nearly $4 billion in cuts to labs. The legislation would increase the number of labs that are sampled, provide more flexibility to labs in how they bill for services, and invest in new technologies and innovation in the laboratory industry.
Over 30 organizations, including the American Hospital Association (AHA), sent a letter to congressional leaders urging them to swiftly pass the Saving Access to Laboratory Services Act (S. 1000/H.R. 2377). The bipartisan legislation would update Medicare’s payment system for laboratory services to make it predictable and sustainable.
The current Medicare payment system for laboratory services is based on private market data from laboratories that service Medicare beneficiaries. However, significant under-sampling led to nearly $4 billion in cuts to hospitals, physicians, and other labs providing commonly ordered tests for Medicare beneficiaries. Without a solution to this problem, labs face another round of cuts of up to 15% in January.
The Saving Access to Laboratory Services Act would update Medicare’s payment system for laboratory services by:
- Increasing the number of labs that are sampled to ensure that payments are based on accurate data.
- Providing more flexibility to labs in how they bill for services.
- Investing in new technologies and innovation in the laboratory industry.
A wide spectrum of stakeholders, including hospitals, doctors, labs, patient organizations, and medical organizations, have approved the measure. Also, several party groups in Congress have backed it.
“We urge you to swiftly pass the Saving Access to Laboratory Services Act and protect access to high-quality, affordable care for millions of Americans,” the organizations said in the letter.
The legislation is currently being considered by the House Energy and Commerce Committee and the Senate Finance Committee.
