Title IV, SEC. 4119. APPLICATION OF COMPETITIVE ACQUISITION PROCEDURES FOR LABORATORY SERVICES. (a) In General. Section 1847(c), as added by section 4117(a), is amended (1) by redesignating paragraph (4) as paragraph (5); and (2) by inserting after paragraph (3) the following new paragraph: ``(4) Clinical diagnostic laboratory tests.''. (b) Reduction in Fee Schedule Amounts if Competitive Acquisition Fails to Achieve Savings. Section 1833(h) (42 U.S.C. 1395l(h)) is amended by adding at the end the following new paragraph: ``(7) Notwithstanding any other provision of this subsection, if the Secretary applies the authority provided under section 1847 to establish competitive acquisition areas for the furnishing of clinical diagnostic laboratory tests in a year and the application of such authority does not result in a reduction of at least 10 percent in the fee schedules and negotiated rates established under this subsection for such tests under this part during the year from the fee schedules and rates for the previous year, the Secretary shall reduce each payment amount otherwise determined under the fee schedules and negotiated rates established under this subsection by such percentage as the Secretary determines necessary to result in such a reduction.''.