Shortly after returning from administrative break, the House approved the Senate’s version of a bill to extend the moratorium of the Medicare sequester cut (-2%) for the remainder of 2021. The temporary suspension of the cut expired on March 31st, 2021 resulting in the Centers for Medicare and Medicaid Services (CMS) directing Medicare Administrative Contractors (MACS) to temporarily hold all claims in anticipation of pending legislation. The temporary pause to claims processing over the past couple weeks while Congress was away should not significantly impact provider’s cash flow as this bill is expected to be signed into law very soon.
This final legislation did, however, remove provisions addressing additional Medicare spending cuts triggered by the recent passage of the American Rescue Plan, referred to as “pay-as-you-go” (PAYGO) measures. PAYGO measures enforce budget neutrality by requiring that any new legislation changing taxes, fees, or mandatory expenditures, does not increase projected deficits. According to an AHA estimate, those cuts would amount to approximately $36 billion ( -4%) for 2022. Additional legislation addressing the PAYGO cuts has not been introduced at this time but we’ll be keeping an eye on it and will pass along more information as it becomes available.
As always, ADVOCATE will continue to keep you informed on the issues impacting medical groups as they develop.
Manager, Regulatory Affairs