The Senate on July 9 approved legislation that repeals the laboratory competitive bidding demonstration project, extends the so-called "TC grandfather clause" for 18 months, and reverses the 10.6 percent cut in physician reimbursements that took effect July 1. The measure already passed the House and now goes to the president for his signature. “This is a great day for laboratories and the Medicare beneficiaries who rely on critically important laboratory services,” said Alan Mertz, president of the American Clinical Laboratory Association (ACLA). “We now urge President Bush to sign this much needed legislation into law as soon as possible.”

ACLA has long opposed the laboratory competitive bidding project not only because of concern for beneficiaries, but because it imposes unworkable requirements and ignores the complexity of laboratory services and the differences in types of tests and laboratories.

For more on passage of the bill, see upcoming issues of National Intelligence Report, Laboratory Industry Report, and G-2 Compliance Report.