Bill eliminates 2% across-the-board cut to healthcare providers

April 15, 2021

President Joe Biden signed a bill that eliminates the 2% across-the-board cut to all Medicare payments, known as sequestration, until the end of 2021, according to a White House news release.

To pay for the change, the bill increases the fiscal year 2030 sequester cuts, according to the American Hospital Association (AHA).

Congress in legislation enacted last year paused the 2% Medicare cuts, but they were expected to resume April 1 without additional congressional action. The Centers for Medicare & Medicaid Services has instructed Medicare administrative contractors to hold all claims with dates of service on or after April 1, 2021, for a short period until the legislation is enacted, according to the AHA.

In a statement, AHA President and CEO Rick Pollack said, “America’s hospitals and health systems thank Speaker Pelosi, Leader McCarthy and the U.S. House of Representatives for joining Majority Leader Schumer, Leader McConnell and the U.S. Senate in extending needed relief from Medicare cuts to doctors and hospitals caring for patients and vaccinating communities.”

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