Quality & Compliance
TC Grandfather Provision Set to Expire - A Call for Legislative Action
Monday, April 09, 2012
CSI Laboratories is focused on serving pathologists and the hospitals they support. Towards this goal, I would like to make you aware of an urgent legislative issue facing the lab industry and ask for your help in creating a solution.
Congress recently passed the Middle Class Tax Reform and Job Creation Act of 2012. While this bill extended the TC Grandfather Provision until June 30, 2012, the bill eliminates the provision going forward. Since 1999, this provision has allowed independent labs to bill Medicare directly for the technical component (TC) of anatomic pathology (AP) services they provide to hospital patients. It is an important system that ensures Medicare patients have access to high quality, comprehensive care.
The elimination of the TC Grandfather provision will require independent labs to shift the costs of their technical component services onto the hospitals they serve. CMS may not compensate these “Grandfathered” hospitals for these increased expenses according to their Diagnosis Related Groupings (DRG) payments. As a result, hospitals will see higher laboratory costs beginning in July, 2012.
Congress must act to reinstate the TC Grandfather Provision, and together, we can help make this happen.
The College of American Pathologists (CAP) and the American Clinical Laboratory Association (ACLA) are urging Congress to permanently extend the TC Grandfather clause by passing either H.R. 2461, the Physician Pathology Services Continuity Act of 2011, or H.R. 3859, the Rural Hospital and Provider Equity Act of 2012, and S.1680, the Craig Thomas Rural Hospital and Provider Equity Act of 2011. These bills all have bi-partisan support.
Please join us in expressing support for the TC Grandfather Provision.
to contact your congressional representatives and request the passage of a permanent solution and please feel free to share this letter and link with your colleagues and staff.
President and CEO
Locate Your Representatives
Legislative History of the TC Grandfather Provision
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