In a July 9, 2008 Sonnenschein e-Alert, we reported on the expiration of the moratorium that permitted independent laboratories to continue billing for the technical component of pathology services furnished to hospital inpatients and outpatients. For additional background on this issue, please refer to our July 9, 2008 e-alert available at: http://www.sonnenschein.com/docs/docs_e-alert/Transmittal_357.pdf.

Congress recently reinstated the moratorium as part of the Medicare Improvements for Patients and Providers Act of 2008. Specifically, Section 136 of the Act reinstates the moratorium, retroactive to July 1, 2008, and extends it through January 1, 2010. Therefore, independent laboratories may resume billing to Medicare for the technical component of physician pathology services furnished to hospital inpatients and outpatients until expiration of the current moratorium.