# CMS Announces Medicare Lab Payment Rates

The Centers for Medicare & Medicaid Services (CMS) announced preliminary Medicare payment rates for laboratory services for 2027, aiming to align Medicare payments more closely with private sector rates. This initiative is projected to save taxpayers approximately **$1 billion annually**. CMS plans phased payment reductions through 2029 to ensure Medicare rates do not exceed private payor rates by more than 15% each year. Public comments on these preliminary rates are open for 30 days following the announcement, and CMS held a public meeting to discuss pricing for tests lacking private payor data.

- **Why this matters:** Procurement professionals and contractors in the laboratory services sector should anticipate adjustments in Medicare reimbursement rates that may impact contract pricing and service delivery models.
- Organizations providing lab services to Medicare beneficiaries should evaluate how the phased payment reductions through 2029 could affect revenue and contract negotiations.
- The alignment with private payor rates signals a shift toward market-based pricing, which may influence future procurement strategies and competitive positioning.
- Stakeholders are encouraged to participate in the public comment period to provide input on the proposed rates and influence final payment policies.

**Jurisdictions:** federal
**Industries:** Healthcare
**Topics:** Regulatory Compliance
**Published:** September 22, 2026

### Government Entities
- Centers for Medicare & Medicaid Services (CMS)
- Congress

### Key Quotes
> By releasing this preliminary information, we are providing greater transparency into the actual market rates for laboratory services, rooting out waste, and supporting better-informed pricing decisions across the healthcare system, including Medicaid and Affordable Care Act Exchanges.
> — Dr. Mehmet Oz, CMS Administrator

### Sources
- [CMS Announces New Preliminary Medicare Payment Rates for Laboratory Services, Saving Taxpayers an Estimated $1 Billion Annually | CMS](https://www.cms.gov/newsroom/press-releases/cms-announces-new-preliminary-medicare-payment-rates-laboratory-services-saving-taxpayers-estimated) - CMS