Medicare Sequestration Moratorium Extended

This afternoon the U.S. Senate passed a compromise bill led by Senator Shaheen (D-NH) and Senator Susan Collins (R-ME) to extend the moratorium on the Medicare Sequestration. The Senate compromise bill will provide a 9-month extension of the moratorium on the -2% Medicare sequester through the end of 2021. 

While we await official word from House Leadership, we do expect the House to pass this Senate proposal upon its return in mid-April and will be signed by President Biden.

The current moratorium on the -2% Medicare sequestration expires on March 31. The extension of the moratorium will likely not be enacted until mid-April at the earliest. This will result in a temporary, 2-3 week period beginning April 1 when the -2% Medicare sequestration will be in effect.  We hope that CMS will hold claims submitted on and after April 1 until the extension is enacted; however, it is unclear whether CMS will do so. We are currently seeking guidance from CMS. While we await clarification from CMS, we recommend that for dates of service on and after April 1, providers consider holding their claims until after enactment of the moratorium extension.

APTA has been actively engaged on this issue including joining a recent joint letter to congressional leaders from national health care groups urging Congress to extend the moratorium. APTA members, patients, and supporters have engaged with their members of Congress on this issue via the APTA Action Center.

Thank you for your advocacy.  Please stayed tuned for additional updates.

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