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Medicare Sequestration Relief Extended Through End of the Year

President Biden recently signed legislation that extends Medicare sequestration relief through the end of the year. We expect CMS to resume issuing claims shortly. Last year, recognizing the challenges facing the provider community during the COVID-19 Public Health Emergency, Congress suspended “Medicare sequestration” that would typically take two percent out of all Medicare fee-for-service claim payments, as well as payments to Medicare Advantage and Part D programs. Essentially, the relief gave Medicare providers and plans a temporary two percent raise. 

The relief originally extended through the end of the year. In last year's end-of-year appropriations package, Congress extended the relief through the end of March 2020. Toward the end of March last year, the Senate passed legislation that would extend the relief through the end of 2020. Earlier this month, the House cleared the Senate's bill extending sequestration relief through the end of 2021 and the President quickly signed the bill

It is expected that CMS will? resume processing Medicare claims, at amounts reflecting the Congressionally-mandated relief, very soon. For providers and Medicare Advantage and Part D plans, the two percent sequestration relief remains in effect through the end of 2021.

Staff Contact: ngrosso@mehca.org

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