SPECIAL ALERT:

Sequestration Cuts Postponed to 2022

April 19, 2021

On Friday, April 16, 2021, the Centers for Medicare and Medicaid Services (CMS) announced that the two-percent sequestration cut in Medicare fee for service (FFS) payments to providers, scheduled to commence April 1, 2021, has officially been pushed back to January 1, 2022. A recent Medicare Learning Network (MLN) article provided some background on the sequestration implementation schedule. It stated, in pertinent part:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act suspended the sequestration payment adjustment percentage of 2% applied to all Medicare Fee-for-Service (FFS) claims from May 1 through December 31, 2020. The Consolidated Appropriations Act, 2021, extended the suspension period to March 31, 2021. An Act to Prevent Across-the-Board Direct Spending Cuts, and for Other Purposes, signed into law on April 14, 2021, extends the suspension period to December 31, 2021.
Based on this most recent government move, Medicare Administrative Contractors (MACs) have been directed to undertake the following actions:

Release any previously held claims with dates of service on or after April 1
Reprocess any claims paid with the reduction applied
According to the MLN article, providers will not need to need to take any action. If you have further questions about the sequestration cuts, feel free to reach out to us at info@miramedgs.com.