Medicare has been overpaying for laboratory services for years but will reduce rates to match the commercial market in 2027, the federal government announced Sept. 21.
The reduction should net $1 billion in annual savings for taxpayers, according to a statement from the Centers for Medicare and Medicaid Services.
Administrator Dr. Mehmet Oz acknowledged that the agency had paid excessive rates for some time, but added, “[The agency] is working to ensure that Medicare isn’t paying more than private insurers for the exact same tests.”
Medicare reimbursement rates for simple laboratory services—such as blood tests and urinalysis—have been about 16 percent above the marketplace average, according to an agency statement….