The CMS has finalized a rule under which it will begin paying the same as private insurance rates for clinical diagnostic laboratory tests.
The cost-saving changes will begin Jan. 1, 2018, a year later than previously proposed. An earlier report from HHS' Office of Inspector General found that Medicare paid between 18% and 30% more than other insurers for some lab tests.
Cost benefits are more modest than previously thought. Additional analysis has found that the rule is expected to save $390 million in its first year of implementation and $3.93 billion over 10 years. Earlier estimates pegged savings at $360 million in the first year and $5.14 billion over 10 years.
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