Medical & Imaging Labs NAICS 621511, 621512

Jul 9, 2025 - One Big Beautiful Bill Includes Significant Medicaid Cuts

• President Trump has signed into law the $3.4 trillion One Big Beautiful Bill that is estimated by Healio to include $930 billion in Medicaid cuts over 10 years. The majority of medical and imaging lab revenue comes from health plans, including traditional health insurers, managed care organizations, and government plans (Medicare/Medicaid). Nearly 12 million more people may be uninsured by 2034, with many losing coverage because of the Medicaid provisions in the bill, according to a US Congressional Budget Office analysis. For the first time in the Medicaid program’s nearly 60-year history, certain able-bodied adults aged 19 years to 64 years will be required to work, participate in job training, volunteer, or enroll in school at least 80 hours a month to maintain their Medicaid benefits. This will also be required for parents of children aged 14 years and older.
• Medicare payments to Medicare Advantage plans are expected to increase an average of 3.7%, or over $16 billion in 2025, according to the Centers for Medicare & Medicaid Services. Medical and imaging laboratories are likely to benefit from the increase in expenditures. The finalized the Calendar Year 2025 Rate Announcement for Medicare Advantage is projected to result in payments of between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.

• The Food and Drug Administration (FDA) has finalized a plan to regulate laboratory-developed medical tests due to concerns about reliability and risks to patients. The agency says that inaccurate results may force patients to unnecessarily start a new treatment or delay care. Major industry players, including academic medical centers that develop their own tests and large commercial laboratories, have opposed the plan, and some analysts expect the opponents to sue the FDA to prevent the new rules from going into effect.
• Medical and imaging laboratory industry revenue increased 6.5% year over year and 1.1% quarter over quarter during the fourth quarter of 2024, according to the US Census Bureau. Medical and imaging laboratory industry employment and average wages for nonsupervisory employees increased slightly during the first three months of 2025, according to the US Bureau of Labor Statistics (BLS). Medical and imaging labs increased prices slightly during 2024, according to the BLS.