Clinical Labs Face Additional Fee Cuts in Final Payroll Tax Cut Deal

The clinical laboratory community is dismayed by a last minute, $2.7 billion cut to the Medicare Clinical Laboratory Fee Schedule (CLFS)  to help finance the payroll tax and SGR deal.  The deal passed both the House and the Senate today.   The bipartisan compromise cuts 2% to the CLFS in 2013 and exacerbates concessions that the clinical labs made in the Affordable Care Act (ACA).  The American Clinical Laboratory Association projects that between sequestration that may take effect next year (which imposes an additional 2% cut), and on top of the 2% reduction in the payroll tax deal and the slashing in the ACA, labs will face a 25% reduction in Medicare payments over the next ten years.  Many in the clinical lab community feel caught off guard because the cut was never perceived to be a pay-for on the conference committee’s negotiating table.   Once word got out that the conferees were considering using the reduction, the Clinical Laboratory Coalition sent Chairman Max Baucus of the Senate Finance Committee, a letter asking for their payment schedule to be spared, but to no avail.

Please see article below.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin - Health Law & Policy Matters | Attorney Advertising

Written by:


Mintz Levin - Health Law & Policy Matters on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.