DGX Quest Diagnostics, Inc.

$DGX $UNH Sector rotation pulling these 2 down a bit Both are best in class within their sub section of healthcare. Good buying op for both

$DGX closed down 4.1% yesterday, labcorp off about 3% with it. cms posted preliminary 2027 medicare lab rates and said medicare has been paying about 16% more than private insurers for the same tests, roughly 1 billion a year in savings. two things cap it though. by law no test can be cut more than 15% a year through 2029, and rates aren't final until november. opened down 6.6% and closed well off the low, so the market sized it fast.

Quest Diagnostics shares fell in after-hours trading after the Centers for Medicare & Medicaid Services (CMS) released preliminary reimbursement rates that could cut laboratory payments by up to 15% starting Jan. 1, 2027. CMS cited data from more than 6,400 laboratories, arguing that Medicare has been paying roughly 16% more than private insurers and estimating the changes could save taxpayers about $1 billion annually. The regulatory setback came after Quest shares reached a 52-week intraday high of $248.84 before reversing lower. Truist Securities maintained a Hold rating while raising its price target to $260 from $250, but the proposed reimbursement reductions directly threaten the routine clinical testing volumes that underpin Quest’s revenue. Labcorp, Quest’s closest major competitor, also faced the same regulatory pressure because of its exposure to the Clinical Laboratory Fee Schedule. $DGX $LH

$DGX Nearly 1 in 3 patients with suspected lyme disease are co-positive for other tick-borne pathogens, finds study by quest diagnostics