Laboratory News

Medicare Competitive Bidding Repeal Passes House Yesterday-Senate to Vote Next

By an overwhelming vote of 355 to 59 yesterday, the House of Representatives passed its version of the 2008 Medicare funding bill.  Included in this bill were three important victories for the clinical laboratory industry: 1) repeal of Medicare's laboratory competitive bidding demonstration project; 2) extension of the so-called technical component grandfather clause for 18 months; and, 3) replacement of the scheduled 10.1% cut in the Medicare Physician Fee Schedule (due to occur on July 1) with a fee increase.

All of this news is good for laboratories and pathologists, but the U.S. Senate still must act on the legislation, and President Bush has threatened the veto the legislation, said Alan Mertz, President of the American Clinical Laboratory Association, in Washington, D.C.

"The prospects for passage of this bill in the Senate are looking good right now," Mertz said Tuesday. "Last night, we heard that the Republicans and the Democrats came to an agreement on this bill, and the [House] vote today confirms that there has been some positive movement. Now we have to wait to see how the Senate will act. I expect we will know something by Thursday and possibly earlier. We are pleased that we had an overwhelming vote that is enough to override a Presidential veto."

While all the components of the bill are significant for pathologists, Mertz was most pleased about the language to repeal the competitive bidding project. "Medicare beneficiaries can thank the House for recognizing the negative impact the competitive bidding program would have on seniors' access to high quality laboratory services," noted Mertz.

"We have long opposed the competitive bidding project-not only because of the concern for beneficiaries' care-but because it imposes unworkable requirements and ignores the complexity of laboratory services and the differences in types of tests and laboratories," he added. "Ironically, ‘competitive bidding' for laboratory services would have resulted in less competition and lower quality of services."

Both houses of Congress have an incentive to pass the 2008 Medicare funding bill before July 1. That is when a 10.1% reduction in physician fees is scheduled to take effect. In an election year, it is unlikely that Congress wants physicians to experience a significant reduction in their Medicare reimbursement.

The fact that the clause mandating repeal of the Medicare Part B Laboratory Competitive Bidding Demonstration Project has passed the House and is included in the Senate bill shows that an energized and focused educational effort by the Clinical Laboratory Coalition in recent years is having a positive effect. It is a change from past years, when the laboratory industry experienced an almost unbroken string of legislative setbacks. Laboratory managers and pathologists are encouraged to contact their senators and urge passage of the 2008 Medicare Funding Bill and repeal of the Medicare Laboratory Competitive Bidding Demonstration Project.

For more information:

• ACLA Lauds House Passage of "Medicare Improvements for Patients and Providers Act" Repeal of Lab Competitive Bidding Included in Bill
• House Votes Cut for Medicare Insurers, Not Doctors