RESULTS Act

1) **What happened and current status**: Senator Tillis (R-NC) introduced the RESULTS Act (S.2761) on September 10, 2025, with 10 cosponsors. The bill was read twice and referred to the Senate Committee on Finance. It remains in early-stage committee review as of today's date (April 29, 2026). Companion bill H.R. 5269 was introduced in the House and referred to Energy & Commerce and Ways & Means. The bill has not yet had a committee hearing or mark-up, but the existence of a companion bill in both chambers signals bipartisan interest in addressing PAMA rate instability. 2) **Money trail**: This bill does not authorize or appropriate new spending. It is a regulatory reform bill that modifies the methodology for calculating existing Medicare Part B payments to clinical diagnostic laboratories. The financial impact is indirect: it prevents future revenue erosion by changing how CMS sets fee schedule rates. Under current PAMA rules, lab payment rates were cut by roughly 10% cumulatively from 2018-2025. The RESULTS Act would stabilize rates by using an independent claims database rather than self-reported data, which should produce higher and more stable rates than the current CMS methodology. 3) **Structural winners**: The pure-play beneficiaries are $LH (Labcorp) and $DGX (Quest Diagnostics). These two companies dominate the US commercial lab market, with combined Medicare Part B lab test revenue over $3 billion annually. Smaller publicly traded diagnostic companies ($EXAS, $GH, $NTLA, $TMO's transplant diagnostics) are less affected because their revenue mix leans toward advanced diagnostic tests, which are exempt from the PAMA annual rate recalibration. The bill explicitly focuses on 'widely available non-advanced diagnostic laboratory tests'. 4) **Real market data analysis**: As of April 28, 2026, $LH closed at $259.57 (down 4.79% in 7 days, down 1.75% in 30 days). $DGX closed at $195.05 (down 4.39% in 7 days, down 0.24% in 30 days). Both tickers are off their 52-week highs ($293.72 for LH, $213.50 for DGX). The recent selloff appears driven by broader market factors, not a reassessment of the RESULTS Act's prospects. The bill remains at the same legislative stage as in September 2025 — no negative or positive events have occurred. The current pullback may present an asymmetric risk/reward if the bill advances to committee markup. 5) **Timeline**: The bill has been in committee for 7+ months without a hearing or mark-up. 2026 is a midterm election year — September and October are peak legislative windows before the November elections. Key catalyst: Senate Finance Committee markup. If Chairman Wyden schedules a hearing, passage probability increases meaningfully. Full passage in 2026 is possible but not likely; the bill's 5-year outlook is moderate-to-high given bipartisan cosponsors and industry support from lab trade groups.