Preserve Lab Services & Prioritize Pandemic Preparedness In Year-End Legislation

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December 8, 2022

Dear Majority Leader Schumer, Speaker Pelosi, Leader McConnell, and Leader McCarthy:

On behalf of the Health Industry Distributors Association (HIDA), I write to urge you to include provisions that will avert catastrophic cuts to Medicare lab payments and provisions to strengthen the healthcare supply chain in any year-end omnibus spending package.

Clinical Lab Fee Cuts

Without Congressional action, cuts of up to 15% will go into effect for many common laboratory diagnostic services beginning in 2023. These cuts threaten to alter the landscape of patient access to diagnostics—further consolidating lab services and reducing access, particularly in rural communities.

Laboratory services are the backbone of the nation’s healthcare system. Lab work plays a role in 70% of the decisions made between a doctor and their patient, yet account for just 3% of all healthcare spending.

HIDA supports the bipartisan effort S. 4449, the Saving Access to Laboratory Services Act (SALSA), which would restructure the data collection process and limit cuts to a reasonable and sustainable range. Recognizing that this legislation might not be achievable in the time remaining this year, HIDA also supports Congressional action to pause the cuts for 2023. As you consider items for the end-of-year spending bill or a package of extenders, HIDA urges you to pause further cuts or to address the underlying problem.

S. 3799, the PREVENT Pandemics Act

The bipartisan PREVENT Pandemics Act is vitally important as the nation continues to respond to the COVID-19 pandemic and prepare for future threats. The legislation is a crucial step forward in improving strategy and coordination while strengthening public-private partnerships. Specifically, the legislation contains improvements to the healthcare supply chain, providing the Strategic National Stockpile with additional flexibility to partner with distributors and manufacturers.

HIDA urges you to consider S. 3799, the PREVENT Pandemics Act for the omnibus spending package. If only parts of the legislation are included, the supply chain provisions contained in Title IV of the bill, which have long standing bipartisan and bicameral support, should be considered.

Thank you for the opportunity to comment on the deliberations related to the year-end omnibus spending bill. If you have any questions, please have your staff contact HIDA.

Sincerely,

Patrick Bailey
Vice President, Congressional Relations
Health Industry Distributors Association

cc:
The Honorable Patty Murray, Chair, Senate Committee on Health, Education, Labor and Pensions
The Honorable Richard Burr, Ranking Member, Senate Committee on Health, Education, Labor and Pensions
The Honorable Frank Pallone, Chair, House Energy & Commerce Committee
The Honorable Cathy McMorris Rodgers, Ranking Member, House Energy & Commerce Committee