S3607

This bill amends Title XVIII of the Social Security Act to include 'covered genetic counseling services' under Part B of the Medicare program, effective January 1, 2027. This means Medicare will reimburse for genetic counseling services provided by licensed or certified genetic counselors, significantly expanding access for Medicare beneficiaries. The bill defines covered services and outlines the qualifications for genetic counselors, establishing a new reimbursable category within Medicare. This change directly increases the addressable market for genetic counseling and, by extension, genetic testing. The money trail flows directly from Medicare Part B reimbursements to genetic counselors and the entities employing them. This creates a new revenue stream for healthcare providers offering these services. Companies that provide genetic testing services will see increased demand as more patients gain access to counseling that often precedes such testing. Staffing agencies specializing in healthcare professionals will also benefit from increased demand for genetic counselors. Historically, similar expansions of Medicare coverage for specific services have led to increased utilization and revenue growth for the covered services and related industries. For example, when Medicare expanded coverage for certain preventative services in the early 2010s, companies providing those services experienced sustained growth. While direct historical precedent for genetic counseling coverage is limited, the pattern of Medicare reimbursement expansion driving market growth is consistent. The bill's bipartisan sponsorship (Barrasso R-WY, Welch D-VT, Capito R-WV, Rosen D-NV) indicates a higher likelihood of passage compared to single-party sponsored bills. Specific winners include diagnostic testing companies like LabCorp ($LH) and Quest Diagnostics ($DGX), which offer a wide range of genetic tests. Increased genetic counseling will drive more referrals for these tests. Healthcare staffing companies such as AMN Healthcare Services ($AMN) will benefit from higher demand for genetic counselors. Hospitals and large healthcare systems that employ genetic counselors will also see increased reimbursement. There are no clear losers from this bill; it expands coverage without reducing existing services. Next, the bill will proceed through the Committee on Finance. If passed by the Senate, it moves to the House of Representatives for consideration. If enacted, the provisions for Medicare coverage of genetic counseling services will take effect on January 1, 2027.