Part B Lab Spending Rose 9% in 2012

Medicare spending on Part B clinical laboratory spending totaled $9.741 billion in calendar year 2012, an increase of 9 percent over 2011, according to data from the 2013 Medicare Trustees Report, prepared by actuaries at the Centers for Medicare and Medicaid Services. Intermediary labs (hospital lab outpatient and outreach) accounted for $4.661 billion of Part B lab spending in 2012, up from $4.351 billion in 2011 and $4.110 billion in 2010. Carrier labs (independent labs and physician office labs) accounted for $5.080 billion in 2012, up from $4.579 billion in 2011 and $4.808 billion in 2010. The 9 percent increase is substantial when compared to growth between 2010 and 2011, which was essentially flat. Between 2006 and 2011 lab expenditures rose an average of 4.3 percent per year, compared with average growth of 6.1 percent per year for total Medicare spending over the same period. Total Medicare spending in 2012 reached $574.2 billion while Part B spending totaled $236.2 billion. Part B lab services represented about 1.7 percent of overall Medicare expenditures in 2012 and 4.1 percent of Part B expenditures. In 2012, the number of beneficiaries covered increased to 50.7 million people, compared to 48.7 million people in 2011. Over the next 10 years, the annual growth rate in Medicare spending is estimated to average 5.5 percent per year, which is less than the 6.2 percent projected last year. The estimated depletion date for the Medicare trust fund is 2026, two years later than was projected in 2011. A number of factors have contributed to the slowed growth in overall Medicare spending, including lower projected spending for most service categories and lower projected Medicare Advantage program costs tied to the Affordable Care Act. The full report is available at www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/Downloads/TR2013.pdf.