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