What’s the bottom-line for labs? About three quarters of all test codes on the revised CLFS would have their payment amounts reduced under the weighted median of private payor rates while a mere 10% would be raised. Even worst for labs, the preliminary market-based CLFS rates would result in a cumulative reduction averaging roughly 35% for the majority of high volume tests over the next few years. These cuts will be phased in, with a maximum 10% per year for each of the first three years (2018-2020) and no more than a 15% cut per year for the following three years (2021-2023).

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