Medi-Cal: Laboratory Services Undergo Reimbursement Reduction

In accordance with Assembly Bill 1494 (Chapter 28, Statutes 2012), the Medi-Cal reimbursement rates for clinical laboratory and laboratory services have been reduced by 10 percent effective retroactively for dates of service on or after July 1, 2012. This reduction will continue until CMS approves a new rate-setting method. All pathology codes with the exception of CPT code 88720 (bilirubin, total, transcutaneous), a transcutaneous service, are subject to the AB 1494 reimbursement reduction. The AB 1494 reduction is in addition to the Assembly Bill 97 (Chapter 3, Statutes 2011) reimbursement reduction. An Erroneous Payment Correction for dates of service on or after July 1, 2012, will be implemented.