U.S. Rep. Bill Pascrell, Jr. (D-NJ-09) today celebrated the passage of S. 610, the Protecting Medicare & American Farmers from Sequester Cuts Act, legislation that delays harsh cuts to Medicare as Congress works to permanently stabilize the program. As a senior member of the Ways and Means Committee, Rep. Pascrell led efforts to include language in the legislation providing for a one-year delay of Medicare cuts to clinical laboratories scheduled to take place next month.

“Medicare’s fate hangs in doubt without our decisive action,” said Rep. Pascrell. “Without relief, physicians and providers who have worked tirelessly on the frontlines of the COVID-19 pandemic are facing a cataclysm of cuts that threaten our health care system and patient access at the most inopportune of times. Today the Democratic House is moving with urgency to shore up Medicare while we fashion a permanent bridge to the future.   

“I am especially gratified that our legislation gives a lifeline to America’s clinical labs. During the pandemic, labs and lab technicians have performed Herculean work to defeat the virus. If they are not properly funded, the lives of millions would be in peril. Because of our bill, they will continue doing their society-saving jobs with greater peace of mind while we work on a long-term solution to the punishing cuts they face.”

In 2014, Congress passed the Protecting Access to Medicare Act (PAMA) which included reforms to how Medicare pays for laboratory tests. The U.S. Department of Health and Human Services took a misguided approach to PAMA implementation, leading to severe cuts to laboratories that over 56 million seniors rely on for lab tests and diagnostics.

Further, PAMA’s data reporting requirement was not properly enforced, especially among physicians and hospitals, which meant that the Centers for Medicare and Medicaid Services (CMS) did not get a full picture of the market data on which to base their reductions, with CMS collecting data from less than 1% of labs.

In June 2019, Rep. Pascrell joined Reps. Scott Peters (D-CA-52), Kurt Schrader (D-OR-05), Richard Hudson (R-NC-08), and George Holding (R-NC-02) in introducing H.R. 3584, the Laboratory Access for Beneficiaries (LAB) Act. Senate efforts were led by Sens. Sherrod Brown (D-OH) and Richard Burr (R-NC). In December 2019, the LAB Act was included in end-of-year FY20 Appropriations legislation.

The LAB Act delayed PAMA cuts and data reporting requirements for one-year to give CMS and clinical laboratories additional time to collect data and ensure that it is representative of all segments of the laboratory market. It further required a study conducted by MedPAC to identify steps that CMS and other stakeholders can take to improve PAMA data collection and rate-setting.

Amid the COVID-19 pandemic, the CARES Act further delayed PAMA cuts and data reporting requirements through January 1, 2022. With the public health emergency continuing, the PAMA cuts scheduled to take place next month without this legislation could imperil the ability of clinical labs to adequately invest in the testing capacity and infrastructure our nation continues to need. This necessary delay will allow time for comprehensive PAMA reform to be developed.

Additionally, in October, Rep. Pascrell joined with Reps. Ami Bera (D-CA-07), Larry Buschon (R-IN-08), and 245 bipartisan Members of Congress in advocating for urgent relief to address cuts to Medicare due to PAYGO, Medicare sequestration, and scheduled cuts to the Physician fee schedule. This legislation addresses those issues temporarily with delays, giving Congress more time to seek a comprehensive deal to stabilize Medicare.