New OIG Report on Medicare Part B laboratory spending

The Office of Inspector General (OIG) released its annual report on Medicare Part B laboratory spending on December 23, 2024.  The report can be found here.

This report is relevant to laboratories because it provides insight into “high cost” areas where government and private payers may focus audit and investigation efforts in the future. In the report, the OIG explained that total Medicare Part B laboratory spending in 2023 was $8 billion in 2023, representing a 5.4% decrease in Medicare Part B spending compared to 2022. This decline is attributable primarily to the drop in COVID testing (a 56% decrease in COVID spending between 2023 and 2022). The OIG reported on genetic testing spending, which has quadrupled in the last decade and comprised nearly a quarter of Medicare Part B spending in 2023. The OIG report also contains data on the top 25 laboratory tests for which Medicare Part B paid in 2023.