March 17, 2026
Foley Hoag Counsel Caroline Farrell was quoted in MedTech Dive discussing the Centers for Medicare & Medicaid Services’ (CMS) recent request for information aimed at strengthening program integrity and combating fraud in laboratory testing. In the article, Farrell commented on new CMS actions—including a six‑month moratorium on enrollment of new durable medical equipment, prosthetics and orthotics companies in Medicare, and a pause on $259.5 million in federal Medicaid funds to Minnesota—as part of a broader effort to curb fraudulent billing practices.
Addressing the rapid rise in spending on genetic testing, Farrell noted that the high cost of these tests means fraudulent activity can escalate quickly. “What I take away from that is these are really expensive tests,” Farrell said, adding that fraud in this space, if widespread, would result in significant financial impact.
Farrell also cautioned that while enforcement efforts are essential to protecting patients and taxpayer funds, overly broad measures could have unintended effects on legitimate laboratories and test developers. “Companies may not want to expand into new areas, test types, because they’re concerned about being a target,” she explained, adding, “At the end of the day, the devil’s going to be in the details.”
She further commented on CMS’s interest in the MolDX program and the potential for expanded or mandatory registration requirements, noting that feedback solicited through the RFI will likely shape any future proposals.
