Published: 6/30/22

Medicare Sequester Cuts

Medicare sequestration cuts will fully resume on July 1st, 2022. This budget control mechanism has been temporarily suspended during the majority of the COVID-19 public health emergency, partially resuming in April of this year.

Since 2013, Medicare has been subject to an automatic annual “sequestration” cut of 2% as required by the Budget Control Act of 2011 which was postponed at the start of the COVID-19 PHE.

In late 2021, Congress passed the Protecting Medicare and American Farmers from Sequester Cuts Act which phased the sequester back into effect in 2022 with the following timeline:

  • 0% applied between January 1st – March 31st
  • -1% applied between April 1st – June 31st
  • -2% applied beginning July 1st

Under the legislation, the -2% sequester cut will be in place until fiscal year 2030, when the cut will increase to -2.25% for the first six months and then to -3% for the remainder of the year.

Provider Relief Fund

As a reminder, providers who received provider relief fund payments exceeding $10,000, in the aggregate, between January 1, 2021 to June 30, 2021 are required to report on their use of funds for Reporting Period 3.

As always, ADVOCATE will keep you up to date on this and all issues impacting medical groups as they become available.

Kayley Jaquet

Manager, Regulatory Affairs