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Lab Industry Likely to Benefit from Expanded Preventive Testing Under New Health Care Law
Date:5/4/2010

The health care reform law enacted last month offers a potential boon to the diagnostic lab industry in the form of new business, but downward pressure on Medicare reimbursement rates could have a negative impact on revenues, said lab industry expert Dennis Weissman at a Slone Partners teleconference on the new law April 21.

Miami, FL (PRWEB) May 4, 2010 -- The health care reform law enacted last month offers a potential boon to the diagnostic lab industry in the form of new business, but downward pressure on Medicare reimbursement rates could have a negative impact on revenues, said lab industry expert Dennis Weissman at a Slone Partners teleconference on the new law.

The addition of 32 million people to the health insurance rolls over the next 10 years, the result of the law's mandate that persons have coverage, is likely to produce a proportional increase in the amount of diagnostic testing, Mr. Weissman predicted.

Moreover, he said, the law's elimination in 2011 of cost sharing for preventive services under Medicare is likely to lead to an increase in preventive and wellness testing. Starting next year beneficiaries will also have access to a comprehensive risk assessment and creation of a personalized prevention plan. "Certainly diagnostic testing is a piece of that puzzle," he said.

The elimination of cost sharing for preventive services will expand beyond Medicare when the health insurance exchange marketplace is created in 2014. "The biggest change in my estimate is going to hit private plans, starting once the health exchange starts in 2014, where they will be required to cover all A and B diagnostic tests as
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