On Wednesday, April 14, 2021, President Biden signed H.R. 1868 into law, which extends a suspension of Medicare sequestration (scheduled payment cuts of two percent for most providers). The payment cuts will remain suspended for the rest of the year.
CMS had temporarily halted claims processing to await Congressional action on Medicare sequestration. The normal claims process will continue as usual now that President Biden has signed the bill into law.
Unfortunately, this is not the last time providers have to worry about payment cuts this year, as the so-called “pay-as-you-go” rule is still in effect for Medicare payments. The most recent COVID-19 rescue/stimulus package (The American Rescue Plan Act) triggered automatic cuts under this rule. Now lobbying groups are focusing their efforts on these changes. Providers across all specialties, from home health, hospice, skilled nursing and beyond are already struggling with new payment models and the sheer financial impact of the pandemic. Stay tuned to our blog for the latest updates as soon as they become available.