Medicare’s 2% Sequestration Reduction Resumes April 1, 2021

On March 25, 2021, the United States Senate passed legislation that would continue to pause the 2% sequestration reduction through the end of 2021. That is the good news. The bad news is the United States House of Representatives will not take up the legislation until the week of April 12th.

While we do expect the House of Representatives to pass the legislation and President Biden to sign it into law, the 2% sequestration reduction will resume with dates of service on and after April 1, 2021 until this occurs. What is unknown at this time is will the Centers for Medicare and Medicaid Services (CMS) process claims with the 2% reduction for dates of service on and after April 1, 2021 and then once legislation is passed and signed into law, go back and reprocess all of the claims and pay the providers the difference or will CMS hold April claims pending the outcome of the legislation in the House of Representatives?

Stay tuned!