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U.S. Senate Passes Medicare Sequester Relief Language, CMS to Hold Claims

Last Thursday evening, the U.S. Senate passed Medicare sequester relief language. This is a crucial step in assisting the recovery of the long term care sector as it continues to eliminate the 2% across-the-board cut to all Medicare payments. MHCA again thanks Senator Collins for her support on this issue. Highlights include: 
  • Sequester Relief through the end of the year;
  • Offset by extending sequester out at the end of the budget window; and
  • Technical corrections to rural health and Disproportionate Share Hospital provisions from the previous COVID relief package.
 As anticipated, CMS will hold claims until the U.S. House returns and passes this version once they are back in session in two weeks (mid-April). CMS issued the following notice yesterday:
 
In anticipation of possible Congressional action to extend the 2% sequester reduction suspension, we 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. 

Staff Contact: ngrosso@mehca.org

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