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Laboratory Industry Report

Injunction in Hand, Industry Focuses on Repealing Competitive Bidding Demo
May 2008

Lab industry stakeholders expressed relief at the recent preliminary injunction against the Medicare competitive bidding demonstration project in San Diego, although warning that the fight now must continue to pass legislation to repeal the project.

The April injunction was a "welcome first step to put the brakes on the demonstration program," said Sen. Pat Roberts (R-Kan.) at the recent American Clinical Laboratory Association annual meeting. There is also a pending House bill—H.R. 3453, which was introduced by Rep. Nydia Velazquez, who is expected to call for a hearing on the legislation.

In the meantime, the Centers for Medicare & Medicaid Services (CMS) has 60 days from the date of the decision to file an appeal. "We are disappointed by the Court’s injunction because we believe we followed Congress’s direction in implementing the laboratory competitive bidding demonstration that was created to determine whether competitive bidding can be used to provide laboratory services while maintaining value, quality, and access to care," said agency spokesperson.

   

 

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