$LH · LABCORP HOLDINGS INC.

Labcorp filed an 8-K under Item 7.01 (Regulation FD Disclosure) on September 22, 2026, addressing CMS's release of preliminary Clinical Laboratory Fee Schedule rates for 2027-2029 under PAMA. The company believes the rates rely on unrepresentative data and would impose steep annual cuts. Labcorp reaffirmed the 2026-2029 long-term outlook it presented at its September 10, 2026 Investor Day: 5-8% revenue CAGR, 75-150 bps adjusted operating margin expansion, 8.5-11.5% adjusted EPS CAGR, and free cash flow growth in line with adjusted earnings.

LH down 2.94% in the regular session to $311.54. The reaffirmed outlook suggests the preliminary CMS rates are within the range management already priced into its Investor Day guidance, but the market appears to be pricing in residual uncertainty ahead of the final 2027 guidance in February.

PAMA reimbursement rates directly affect Labcorp's core lab testing revenue; the reaffirmed outlook signals management confidence but the preliminary CMS data dispute and legislative uncertainty keep

PAMA rate-setting affects the entire clinical lab industry. Quest Diagnostics (DGX) faces the same reimbursement headwinds. The RESULTS Act is the key bipartisan legislative vehicle that could reshape the lab reimbursement landscape if passed.

PAMA payment rates could impose steep annual cuts that threaten patient access to lab services. The preliminary rates are based on data Labcorp considers unrepresentative of the broader commercial lab market, and the legislative fix (RESULTS Act) is not guaranteed.