Quest Diagnostics urges restoration of Medicaid lab rates; asks legislature to complete promise from prior budget

Vivek Bhatt, president for the Great Midwest region at Quest Diagnostics, testified that Ohio’s Medicaid reimbursement for clinical laboratory testing remains below peer states and below the level the legislature intended in the prior budget.

Bhatt said clinical laboratory fees were supposed to increase under House Bill 33 but that, in implementation, only the venipuncture (blood-draw) fee rose; test fees themselves were not increased. He urged the committee to increase lab rates from about 75% of Medicare to the 80% level that he said was intended two years earlier.

Bhatt said neighboring states pay higher percentages (examples cited: Michigan and West Virginia around 90% of Medicare; Pennsylvania higher on average) and warned that continued underpayment risks lab closures or decreased service availability over time. He told the committee Quest performs more than 2.2 million tests for Ohioans and employs more than 1,000 people in the state.

Why it matters: Diagnostic testing is a frontline component of diagnosis and treatment across hospitals, clinics and outpatient settings. Lower Medicaid lab rates can squeeze both independent and hospital laboratories and may influence local access.

What to watch: The committee may consider whether to include a lab-rate increase in the final budget or target increases through provider-specific adjustments; Quest requested a targeted restoration to 80% of Medicare for lab tests.

Ending note: The committee did not take immediate action; lab reimbursement levels remain under consideration as part of the broader health budget.