College of American Pathologists
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February 18, 2011
© 2011 College of American Pathologists
Special Report
CMS Rescinds TC Grandfather Payment Change

Feb. 18—CMS is rescinding a previously announced change to its current technical component (TC) “grandfather” payment policies that were set to take effect April 1, according to a transmittal made public today.

The College has spent months urging the agency to reconsider this change because of the potential harm it could have on pathology practices, and just this week met with various members of Congress to express its concerns. When Congress extended the TC grandfather provision through December 2011, lawmakers did not impose any limits on enrollment codes.

In its most recent communication with CMS, the CAP noted that if this policy change were implemented, only providers designated as “specialty 69” would be paid for the TC component under the grandfather provision beginning April 1. However, not all laboratories with hospital arrangements covered under the TC grandfather have this specialty 69 designation. The planned change would have had an adverse impact on otherwise qualified laboratories and pathology practices enrolled in Medicare as specialty code 22—physician/pathology practice—or specialty code 70—clinic or group practice.

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