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On 4 August, ASM sent a Public Affairs Alert to its clinical members to inform them of a proposal that the Senate Finance Committee is considering in its health care reform legislation.
The proposal would impose a 20% copayment on laboratory tests covered by Medicare. Copayments for laboratory tests would have a negative impact on the ability of clinical laboratories to continue to provide services to Medicare beneficiaries because the administrative costs for collecting copayments will exceed the collectible amount of the copayment (labs must make repeated attempts to collect the copayments under current law). The 2000 Institute of Medicine (IOM) Report Medicare Laboratory Payment Policy, Now and in the Future makes the following argument against beneficiary copayments: "The current policy of not requiring beneficiary cost-sharing for Medicare outpatient clinical laboratory services should continue. Cost-sharing is unlikely to significantly reduce overuse or increase the detection of fraud and abuse; it could create barriers to access for the most vulnerable Medicare beneficiaries; and it would be financially and administratively burdensome for laboratories, patients, and the Medicare program depending on its design." In its alert, the ASM encouraged members to contact their Senators to oppose the provision because of the negative effect of this policy on both clinical laboratories and Medicare beneficiaries. The alert and sample letter to Senators is available at http://www.asm.org/index.php?option_com_content&view_article&id_90973&Itemid_9999.
In July, the House of Representatives introduced its version of health care reform legislation, "The Americas Affordable Health Choices Act of 2009." While the House bill does not include copayments, section 1131(d) of the bill proposes a new annual "productivity adjustment" to the Clinical Laboratory Fee Schedule (CLFS). This adjustment would replace the current formula for the CLFS annual fee schedule update, which is the Consumer Product Index (CPI-U) minus 0.5% for calendar years 2010-2013 (note: the CLFS reduction of 0.5% was placed into statute in 2008, in exchange for a provision to repeal a Medicare competitive bidding proposal for clinical lab services). The House proposal would update the fee schedule with a new formula: the CPI-U minus an annual "productivity adjustment" beginning in 2011. The potential impact of this proposal could have resulted in greater negative updates in upcoming years. However, the Clinical Laboratory Coalition, of which ASM is a member, worked with House Committee staff and received an agreement that a technical change will be made to ensure that the CLFS will not receive negative updates from the productivity adjustment. This is consistent with current law, which prevents negative updates from occurring in most of the other Medicare fee schedules.
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