AAB Proficiency Testing

Bush’s FY 2009 Budget Calls For Nationwide Competitive Bidding

 President Bush has released a proposed FY 2009 Federal budget calling for nationwide competitive bidding for Medicare’s Part B clinical laboratory services with an estimated savings of $110 million in 2009 and $2.29 billion over FY 2009-2013.  No mention is made in the budget to freeze or cut the current Medicare Part B fee schedule.

 Analysis:

 President Bush’s call for nationwide competitive bidding beginning January 1, 2009, means that there is no need to proceed with a competitive bidding demonstration project because the results of that project will not be available for at least three to four years.  Since this is the same proposal President Bush made last year, expect that Congress will NOT adopt it.  However, there is severe pressure to produce savings to the Medicare program.  This means that Congress will be looking at other ways to extract savings from almost all Medicare providers (except perhaps managed care companies), including clinical laboratories.  Therefore, expect a battle later this year over proposals to freeze or cut Medicare’s Part B fee schedule or to reduce Medicare expenditures for clinical laboratory services in some other way.

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