CMS Proposes $1B Medicare Lab Payment Cuts; Labcorp, Quest Slide Premarket
LH sits 23% above its 52-week low of $244.52.
Summary
CMS proposed cutting Medicare lab payment rates to align with private payors, estimating $1B annual savings. Labcorp fell 5.9% premarket to $254.42; Quest Diagnostics dropped 6.9% to $227.90. Medicare pays 16% above private rates, final rates expected November, effective Jan 1 2027. The proposal directly pressures Labcorp's core testing revenue, which drives most of its earnings. Watch for final CMS rule in November and any company response on earnings impact.
At the time of this announcement, LH was trading at $301.00 on NYSE in the Life Sciences sector, with a market capitalization of approximately $26B. The 52-week trading range was $244.52 to $341.80. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.