The Centers for Medicare & Medicaid Services (CMS) announced preliminary Medicare payment rates for laboratory services for 2027 based on weighted median private payor rates for certain clinical diagnostic laboratory test codes. Although rates have not been finalized yet, CMS summarized what to expect in a press release.  

This is only the second full data collection and reporting cycle for a majority of tests since the Protecting Access to Medicare Act of 2014 (PAMA) was established, requiring CMS to align payment rates with what private payors pay. The agency noted that Medicare currently pays about 16% more for clinical laboratory services than private payors, and the new fee schedule will be more closely aligned, aiming to save taxpayers about $1 billion each year. The changes will be made in increments through 2029 due to reductions being capped at 15% per year.  

CMS will publish final payment rates around November and is seeking public feedback on the preliminary Calendar Year 2027 Clinical Laboratory Fee Schedule rates and supporting data by October 21, 2026.