Wake up to what matters from Mike Allen each day

Stories

Medical labs sue federal government over lower payments

medical lab, hhs, medicare, lawsuit
Medical labs say pending Medicare cuts will reduce access. Photo: Arnulfo Franco / AP

The medical lab industry's lobbying group, the American Clinical Laboratory Association, is suing the Department of Health and Human Services over a new reimbursement system that would drastically slash what Medicare pays for labs. The cuts would total about $670 million in 2018.

Between the lines: Some experts say Medicare has overpaid for lab services for a long time. The new payment system was supposed to rectify that, but the labs say Medicare used flawed data to implement that system. This lawsuit is a microcosm of why altering health care policy is so difficult: Any changes ultimately threaten one industry's bottom line.

More stories loading.