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- House advances bill delaying lab cuts
Good news from Washington for labs: The House voted yesterday to postpone Medicare cuts to clinical lab fees.
Here's a brief summary of what’s in the bill.
The House has passed the Consolidated Appropriations Act of 2026, which includes provisions to stop 2026 cuts to the clinical laboratory fee schedule (CLFS) payments.
The impact: The delay would give significant financial relief to clinical labs, which faced cuts to tests of up to 15% on January 30.
- It would ensure that current rates remain in effect until at least January 1, 2027, allowing Congress more time to enact permanent reforms to fix the CLFS.
- The measure was part of a set of four appropriations bills aimed at funding the federal government.
What we’re saying: “Congressional action to prevent Medicare cuts to clinical laboratories is essential to preserving patient access to diagnostic testing,” said CAP President Qihui "Jim" Zhai, MD, FCAP.
- "We appreciate the House’s passage of legislation to halt these cuts and now urge the Senate to swiftly enact the bill. Doing so will give Congress an additional year to reform the flawed PAMA rate-setting process for clinical laboratory services and ease unnecessary administrative burdens on laboratories."
Key provisions: Aside from delaying Medicare pay cuts to labs, the bill encompasses several important health care measures:
- Medicare Improvement Fund: Funding is increased to $2.1 billion, giving the government payment policy flexibility to offset future payment cuts.
- Alternative payment models: Incentives are extended through 2028, with an increased payment amount of 3.1%.
- Cancer registries: $53.4 million was allocated to support data collection and research.
- No Surprises Act: Funds were allotted for Centers for Medicare & Medicaid Services operations, including enforcement and coordination activities.
Next steps: The Senate is expected to vote on the House bill next week, which is the next step toward it becoming law.
- We’ll keep you updated on the bill’s progress.