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Monday, Oct 19 2020

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CMS To Penalize Labs Taking More Than Two Days To Process COVID Tests

In an effort to speed up the delivery of COVID-19 test results, the Centers for Medicare and Medicaid Services says it will pay less to labs that take longer than 2 days.

Labs that take longer than two days to complete coronavirus tests will see federal payments cut $25 per test under a new policy to begin Jan. 1. The agency overseeing Medicare will pay labs $100 per coronavirus test completed on a high-volume machine within two days of collecting a specimen. Labs that take longer will get only $75 per test next year, according to the Centers for Medicare and Medicaid Services. (Alltucker, 10/18)

In mid-April the agency announced that it was doubling the pay rate to $100 per test to labs using high throughput technology, meaning that, in essence, Thursday’s announcement reveals a $25 penalty to those labs that don’t produce results within two days. The agency explained the new payment amounts ($100 and $75) reflect the resource costs laboratories face for completing COVID-19 diagnostic tests using high throughput technology. (Brown, 10/16)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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