1、Order Code RS22769Updated May 2, 2008Medicare Clinical Laboratories CompetitiveBidding DemonstrationBarbara EnglishInformation Research SpecialistKnowledge Services GroupSummaryMedicare pays for clinical laboratory services based on a fee schedule originallyestablished in 1984. Section 302(b) of The
2、 Medicare Prescription Drug, Improvement,and Modernization Act, P.L. 108-173, mandated the implementation of the MedicareClinical Laboratory Competitive Bidding Demonstration to explore whether qualitylaboratory services offered through competitive bidding could be provided at pricesbelow current Me
3、dicare rates. Opponents of competitive bidding had asked the Centersfor Medicare and Medicaid Services (CMS) to postpone the demonstration, citingproblems such as its complexity and its effect on small businesses. Their concern wasexpressed during an open forum sponsored by CMS, and as a result, CMS
4、 made somechanges to the proposal. The Presidents FY2008 Budget estimated that payments toclinical laboratories would decrease, saving $110 million in FY2008 and $2.38 billionfrom FY2008 through FY2012 if competitive bidding replaced the fee schedule. OnApril 28, 2008, a U.S. District Court granted
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