For years, Medicare payment rates for pathology and laboratory services have steadily eroded. Since 2001, Medicare payments under the Physician Fee Schedule (PFS) have fallen approximately 33 percent—largely due to the lack of an inflationary update to counteract inflation. Things are bad for the Clinical Laboratory Fee Schedule (CLFS) too, as a failed reform effort massively cut laboratory payment rates.

Given that insurers benchmark their payment rates to Medicare, the inability of Medicare to keep up with inflation is undermining the stability of clinical laboratories and pathology practices. Fortunately, legislation has just been introduced in Congress to reverse the cut and provide an update.

ASCP will be working closely with the American Medical Association and other medical specialty societies to address payment issues affecting pathology and laboratory medicine. The legislation, known as the Medicare Patient Access and Practice Stabilization Act, reverses the 2.8 percent cut in the PFS for 2025 and provides a 2 percent update—about half the estimate of medical inflation for this year. We ask that you join us in taking action to reverse these payment challenges.

How you can help:

Please use ASCP’s e-Advocacy Center to tell Congress to Fix Medicare’s Payment Systems.