CMS plans changes to 2027 Medicare lab payment rates

CMS has released preliminary Medicare payment rates for 2027 based on private payor data, aiming to reduce costs and better align with private sector payments, with final rates expected in November.

The Centers for Medicare & Medicaid Services (CMS) announced preliminary Medicare payment rates for laboratory services for 2027 based on weighted median private payor rates for certain clinical diagnostic laboratory test codes. Although rates have not been finalized yet, CMS summarized what to expect in a press release.  

This is only the second full data collection and reporting cycle for a majority of tests since the Protecting Access to Medicare Act of 2014 (PAMA) was established, requiring CMS to align payment rates with what private payors pay. The agency noted that Medicare currently pays about 16% more for clinical laboratory services than private payors, and the new fee schedule will be more closely aligned, aiming to save taxpayers about $1 billion each year. The changes will be made in increments through 2029 due to reductions being capped at 15% per year.  

CMS will publish final payment rates around November and is seeking public feedback on the preliminary Calendar Year 2027 Clinical Laboratory Fee Schedule rates and supporting data by October 21, 2026.  

The College of American Pathologists (CAP) published a statement from President Qihui “Jim” Zhai, MD, FCAP, regarding the 2027 Clinical Laboratory Fee Schedule rates, calling on congress to pass the RESULTS Act to ensure patients have access to laboratory services.  

He said, “The 2027 Clinical Laboratory Fee Schedule rates reinforce what laboratories and pathologists have known for years: the current payment system is not sustainable. Cuts of this scale threaten the stability of the laboratory infrastructure that patients and physicians rely on for accurate and timely diagnoses. We appreciate Congress’s ongoing efforts to address these challenges and urge lawmakers to enact the RESULTS Act, which would modernize the CLFS rate-setting process, better reflect today’s laboratory marketplace, and help protect patient access to essential diagnostic services for years to come.” 

Quest Diagnostics also released a statement urging Congress to pass the RESULTS Act, highlighting current PAMA rate-setting flaws. They said, “As the American Clinical Laboratory Association (ACLA) has determined, the PAMA rate-setting process was unable to provide the comprehensive and representative commercial data CMS required to set fair, market-based payment rates.”

They continued, “Along with ACLA, we continue to urge Congress to pass the RESULTS Act this year. RESULTS is a sensible and fair long-term reform that would replace PAMA’s incomplete and skewed data collection process with a comprehensive and representative data process. Over 130 members of Congress and 70 patient and provider groups, including the American Medical Association, American Cancer Society and the American Hospital Association, support passage of RESULTS.”

Additionally, Quest pointed to a survey they commissioned and recently published the results of, revealing concern among registered voters about Medicare payment cuts. Most respondents said they consider laboratory testing essential to their or their family’s care. About three-quarters think Congress should intervene and prevent cuts before patients are harmed. 

“Passage of RESULTS is the right step to ensure our nation has a laboratory system that is strong, innovative and prepared to serve the healthcare needs of the 21st century,” Quest emphasized.

This page has been updated as of September 24, 2026.

About the Author

Erin Brady

Erin Brady

Managing Editor

Erin Brady is Managing Editor of Medical Laboratory Observer.

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