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- OIG: Genetic tests drive rise in Medicare Part B lab spending
Medicare Part B spending on lab tests climbed in 2024, fueled by rapid growth in genetic testing, according to a new HHS Office of Inspector General (OIG) report.
The OIG's report, Total Medicare Part B Spending on Lab Tests Rose in 2024, Driven by Increased Spending on Genetic Tests (OEI-09-25-00330), found that Medicare Part B spent $8.4 billion on lab tests in 2024, a 5% increase from 2023.
The impact: Genetic tests accounted for 43% of all Part B lab test spending in 2024, up from 18% in 2018.
- Spending increased even as the number of Medicare enrollees receiving lab tests continued to decline.
This shift may have implications for test utilization, payment policy, and future Medicare reforms affecting clinical laboratories.
Go deeper: Read the OIG’s full report.