CMS Proposes Up to 15% Lab Fee Cuts; Quest, Labcorp Slide Premarket

Investing.com··USCHGB·Read original
3▲2 ▼2Impact / 5
Summary · why it matters

The Centers for Medicare & Medicaid Services released preliminary reimbursement proposals that could cut laboratory fee payments by as much as 15% starting Jan. 1, 2027, sending Quest Diagnostics down 6.9% and Labcorp down 4.5% in premarket trading. CMS said the proposed changes, based on data from more than 6,400 laboratories, were intended to realign Medicare payments with private-insurer rates, arguing Medicare currently pays laboratories roughly 16% more than private insurers, and estimated the changes could save taxpayers about $1 billion annually. The proposal followed Quest shares reaching a fresh 52-week high of $248.84, and a Truist Securities note maintaining a Hold rating while raising its price target to $260 from $250 did little to offset concerns about lower reimbursement rates for routine clinical testing. Elsewhere in premarket trading, On Holding jumped 6.4% after the Swiss sportswear company said its board authorized the repurchase of up to $1 billion of its Class A ordinary shares through the end of 2029, alongside new long-term growth targets at its investor day. Vicor surged nearly 9.9% after raising its third-quarter 2026 revenue outlook to sequential growth of more than 20% from roughly 10%, citing royalties from its expanding non-exclusive Vertical Power Delivery licensing program, while Endava fell 12% after placing CFO Mark Thurston on administrative leave pending an accounting investigation and appointing Conor McShane of AlixPartners as interim CFO.

Impact on assets 7

Biotech & Genomic Medicine▼ · 3 stocks
Quest Diagnostics Incorporated
DGX
▼ NegativeRegulationrelevance

CMS proposed cutting Medicare lab fee payments by up to 15% starting 2027, directly pressuring Quest's reimbursement rates.

Consumer Discretionary▲ · 2 stocks
On Holding Ltd
ONON
▲ PositiveCapitalrelevance

On Holding's board authorized a $1 billion share buyback through 2029 alongside new long-term growth targets.

Semiconductors▲ · 1 stocks
Vicor Corporation
VICR
▲ PositiveCapitalrelevance

Vicor raised its Q3 2026 revenue outlook to over 20% sequential growth, citing royalties from its expanding Vertical Power Delivery licensing program.

Information Technology▲ · 1 stocks
© 2026 MarketIVNews