REDUCTION IN UPDATES TO PAYMENT AMOUNTS FOR CLINICAL DIAGNOSTIC LABORATORY TESTS; STUDY ON LABORATORY TESTS.

SEC. 4553. REDUCTION IN UPDATES TO PAYMENT AMOUNTS FOR CLINICAL DIAGNOSTIC LABORATORY TESTS; STUDY ON LABORATORY TESTS. (a) Change in Update.—Section 1833(h)(2)(A)(ii)(IV) (42 U.S.C. 13951(h)(2)(A)(ii)(IV)) is amended by inserting “and 1998 through 2002” after “1995”. (b) Lowering Cap on Payment Amounts.—Section 1833(h)(4)(B) (42 U.S.C. 13951(h)(4)(B)) is amended— (1) in clause (vi), by striking “and” at the end; (2) in clause (vii)— (A) by inserting “and before January 1, 1998,” after “1995,”, and (B) by striking the period at the end and inserting “, and”; and (3) by adding at the end the following new clause: “(viii) after December 31, 1997, is equal to 74 percent of such median”. (c) Study and Report on Clinical Laboratory Tests.— (1) In general.—The Secretary shall request the Institute of Medicine of the National Academy of Sciences to conduct a study of payments under part B of title XVIII of the Social Security Act for clinical laboratory tests. The study shall include a review of the adequacy of the current methodology and recommendations regarding alternative payment systems. The study shall also analyze and discuss the relationship between such payment systems and access to high quality laboratory tests for medicare beneficiaries, including availability and access to new testing methodologies. (2) Report to congress.—The Secretary shall, not later than 2 years after the date of enactment of this section, report to the Committees on Ways and Means and Commerce of the House of Representatives and the Committee on Finance of the Senate the results of the study described in paragraph (1), including any recommendations for legislation.