Labcorp Holdings said the CMS plan to cut Medicare payment rates for laboratory services by 15% starting in 2026, with further reductions through 2029, will not impact its 2026-2029 long-term outlook. The company reaffirmed that over that period it expects compound annual revenue growth between 5% and 8%, adjusted operating margin expansion between 75 and 150 basis points by the end of 2029, compound annual adjusted EPS growth between 8.5% and 11.5%, and compound annual free cash flow growth in line with adjusted earnings growth. Labcorp said it had considered the anticipated continuation of Protecting Access to Medicare Act-related reimbursement pressure in developing the guidance, which was released at its Investor Day on Sept. 10. The company also argued the cuts will negatively impact patient access to lab services and said it continues to support the bipartisan Reforming and Enhancing Sustainable Updates to Laboratory Testing Services, or RESULTS, Act. Labcorp closed Tuesday down about 3%, while rival Quest Diagnostics was off about 4%.
Laboratory Corporation of America HoldingsCMS 15% Medicare lab payment cuts starting 2026 are a regulatory headwind, but Labcorp reaffirmed its 2026-2029 outlook and says the cuts won't impact guidance.
Quest Diagnostics IncorporatedNamed as rival that fell ~4% amid CMS Medicare lab payment cuts, which pressure lab-services reimbursement.
