Labcorp And Quest Diagnostics Shares Fall Following CMS Cut
Tap title to read story
Shares of major diagnostic-testing companies Labcorp Holdings and Quest Diagnostics fell in premarket trading on September 22, 2026, following an announcement from the Centers for Medicare & Medicaid Services. CMS revealed that Medicare has been paying approximately 16% more for laboratory services than private payers and announced preliminary rate realignments under the Clinical Laboratory Fee Schedule designed to save taxpayers $1 billion annually. The proposed cuts could reduce payments for hundreds of tests by up to 15%. The American Clinical Laboratory Association warned that the steep reductions threaten patient access to diagnostic testing services. Final rates are scheduled to be published in November to go into effect on January 1, 2027, while industry stakeholders continue pushing for legislative alternatives such as the bipartisan RESULTS Act.
More context
Timeline
- 2024 — Laboratories reported pricing data utilized by CMS to evaluate payment benchmarks under the Clinical Laboratory Fee Schedule.
- September 16, 2026 — Quest Diagnostics and the American Clinical Laboratory Association published a national survey highlighting voter concern over diagnostic testing cuts.
- On September 22 2026 CMS announced preliminary Clinical Laboratory Fee Schedule rate realignments targeting up to 15% cuts, causing share drops for Labcorp and Quest Diagnostics.
Why it matters
Immediate US impact: Triggered immediate equity sell-offs for major clinical testing providers Labcorp and Quest Diagnostics and initiated a public comment and legislative push regarding Medicare reimbursement rates. Possible long-term US impact: Could reshape Medicare clinical laboratory fee structures through phased-in annual reductions of up to 15% through 2029. Most affected groups: Clinical laboratories, healthcare investors, Medicare beneficiaries, and medical diagnostic testing providers. Reader priority: Medium
Coverage notes
Center: No NEWS outlet is framing the story in a materially distinct ideological way.
Primary report
CMS Diagnostic Services Payment Rate Realignment Notice
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
