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ASCP Urges Medicare Payment Reform for Labs

Clinical laboratory professionals urge Medicare payment reform as ASCP submits comments on the CY 2027 Physician Fee Schedule
Photo: Salem Chicago News

By Salem Chicago News Staff

The American Society for Clinical Pathology on Thursday urged the Centers for Medicare and Medicaid Services to address payment policies it said threaten the quality and accessibility of pathology and laboratory services.

In comments on the proposed CY 2027 Medicare Physician Fee Schedule rule, the Chicago-based organization outlined concerns about duplicative-testing penalties, reduced indirect practice-expense allocations and unstable laboratory payment rates.

ASCP opposed a CMS proposal to reduce indirect practice-expense allocations by 50 percent for services performed in facilities such as hospitals. The organization argued that independent pathology practices incur billing, compliance, information technology and personnel costs even when pathologists work in hospital settings.

On the issue of duplicative testing, CMS asked whether claim denials or frequency limits could reduce repeat testing when providers cannot access prior results because of interoperability failures. ASCP opposed penalizing laboratories for medically necessary testing when prior results are unavailable because of problems outside their control.

“ASCP urged CMS to improve interoperability rather than penalize laboratories and to recognize the personnel, technology, quality systems, and other resources required for quality pathology and laboratory services,” the organization said.

The organization also supported retaining the American Medical Association’s Current Procedural Terminology as the national coding standard, saying alternative systems cannot replace CPT’s descriptions of physician and laboratory services.

ASCP worked in coordination with the College of American Pathologists to urge CMS to delay certain changes until stakeholders have sufficient data to assess the effects.

The organization, founded in 1922, represents more than 100,000 pathologists and laboratory professionals. It is headquartered at 33 West Monroe Street in Chicago.

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