EKRA compensation W2

EKRA does tell labs how to compensate employees. Compensation can't be based on volume or REVENUE at all. Last I checked revenue was factored in to value of a count. Also what is a draw based on? Revenue or profitability. You are missing the point of EKRA The Feds think sales reps are crooks and should not be paid based on samples or revenue they bring to a lab. They want to kill 1099 employees.

The fix will come but all reps must be W2 employees. Impeachment help up the bill, but it will come probably when a budget deal is reached. Which could be after the election. Until then, every labs that uses volume or revenue in any calculation for compensation to sales reps is in jeopardy from prosecution. The reps that accept this compensation are also subject to prosecution. Jeopardy is on both sides, so be careful the compensation you accept.

 

Exactly right about EKRA. I don't know about the when part but saying you are paying based on a draw isn't going to cut it. The problem is that EKRA still impacts w-2 reps if they are paid a bonus that is based on revenue or volume. It is unamerican not to be able to pay rep more for producing more. That's how any country that is productive allows people to be compensated.

 

I agree about being unamerican. This country is becoming more and more socialist, so the government will tell everyone what to do.

 

Tox is dead.

 

Only dead if you're a 1099 that expects $20 per sample. Tox is still lucrative to labs that do things the right way. My lab averages $48 per tox sample and still makes 33% profits. 50%+ profit labs is what ruined the industry. Long time labs that did not get greedy will always be around. Full service labs are the ones that will survive.

 

Please explain, are you saying that the total reimbursement for your lab on Tox (Including the zero pays because the insurance did not pay the lab) averages $48 or $48 profit?

Most In-network contracts are around 55%-65% of Medicare and most labs will average over $200 on Medicare for a screen and confirmation. Usually the labs profitability depends on the insurance carriers the rep is sending such as Medicaid and whether or not the lab is in-network with the major commercial carrier for the patients going to that particular office. One lab might be great for one territory but horrible in another because they don't have the right contracts to get paid well or consistently. It's why most labs are more regional and not national as very few labs have national contracts.

 

You above revenue comments on Medicare is exactly why CMS is coming after labs. How do you get over $200 for Medicare average on screen & confirmations? The screen pays (2020) $62.14. Tier 1 Confirm pays $114.43. That totals $176.57. The only way to get over $200 average is to be in Tier 2 Confirm all the time! CMS is not allowing confirmations on all drugs (negative or positive) in screens anymore. All these labs testing this way will pay tons of money back as this type of testing is not medically necessary. They are robing the system. We average $48 per req because only 49% of our screens need confirmations. We do things the way CMS and insurers are insisting. That is why my lab has paid very little money back in our audtis. Look at all the labs in trouble that built their model on your way of thinking. Tons of other labs owe so much money from audits. Your description above is the way to bankruptcy. My lab has been around for over 40 years and will continue to thrive, while you will have to find real work and stop stealing money for doing nothing!

 

LOL You are wrong because my lab doesn't even do Tox, I am strictly going on what others have told me. We have focused on specialty testing so no, I will not be looking for real work.

 

Specialty testing on an OON basis! You are a crook. Become full service or you will be excluded from all insurers by end of 2020!

 

So why are labcorp, quest, cpl etc still paying commissions to reps?

Ekra was meant to scare OON labs with 1099 reps playing by their own rules. Ekra did just that by scaring people but law firms and the government have all said there are too many grey areas in it and it needs to be clarified which they will do after the election. There is also no cases of ekra being brought up against anyone as of now

 

You are an idiot. You are implying that EVERY OON lab is a crook. Do you realize that the insurance carriers don't even want to allow more labs to sign in-network contracts?
Do you realize that being a full service adds nothing? We offer a full range of service but we don't do Tox in-house.
You rail against people being OON and paying 1099 but then just ignore the fact that the VAST majority of labs do not have in-network contracts NOT because they want to bill OON but because the insurance carriers are not signing up labs. Oh and it isn't because they have a problem with those labs exactly its that they want a very few number of labs.
The real truth is being W2 does not make a rep any more compliant than one who is paid 1099 as there have been tons of reps break laws both ways. If a rep gets paid a commission then either way is illegal according to EKRA but if they allow W2 reps in the future to be paid a commission you will have tons of reps be a W2 but simply paid a super low wage with the vast majority of their pay as commission and there will still be corruption by crooked reps.