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Medicare 2% Sequestration Cuts Delayed

The House and Senate voted to delay the 2% across-the-board cut to Medicare through December 31, 2021. CMS has communicated there will be a temporary claims hold pending Congressional action to extend the 2% sequester reduction suspension. In anticipation of possible Congressional action to extend the 2% sequester reduction suspension, CMS instructed the Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1, 2021, for a short period without affecting providers’ cash flow. This will minimize the volume of claims the MACs must reprocess if Congress extends the suspension; the MACs will automatically reprocess any claims paid with the reduction applied if necessary.

Do you have questions about what this means for your facility? Call us with your questions at (270) 726-4033.