Medicare Sequestration Legislation Becomes Law

Updated April 14, 3:00 p.m. CST

WASHINGTON, D.C. (April 14, 2021)—The House of Representatives passed an amended version of H.R. 1868 on April 12, extending the pause on the 2% Medicare sequester cuts through the remainder of 2021.  

“Keeping the 2% sequester cuts on hold for the remainder of the year will help offset the new costs and operational challenges associated with serving patients brought on by the pandemic,” said Tom Ryan, AAHomecare president and CEO. “This bill is the latest example of the terrific bipartisan Congressional support for healthcare providers over the past year, and these measures have been especially welcome by the HME community.”

“I’m especially proud of the thousands of HME suppliers who reached out to their legislators to seek support for extending the sequester moratorium,” continued Ryan. “The volume and passion of your outreach on this issue has been exceptional.”

 “NAHC was a central participant in a coalition of provider representatives that brought about this success as all of health care continues to face the challenges of the pandemic. NAHC members undertook a major grassroots effort that led to thousands on contacts with the Congress in support of the continued suspension of the sequestration,” said National Association for Home Care & Hospice President William A. Dombi in an email to members.

According to estimates based on current Medicare data, extending the relief should result in approximately $158 million more in Medicare payments to home medical equipment suppliers, $270 million to HHAS and $300 million to hospices over the rest of the year, on top of the $193 million provided by pausing the cuts from May 2020 through March 2021—and adding to more than $2 billion in “bottom line” policy wins for suppliers over 2020 and 2021.

The Centers for Medicare & Medicaid Services earlier announced plans to hold off on processing Medicare claims with dates-of-service starting April 1 to allow Congress to finalize action on the bill and eliminate the need for subsequent reprocessing. President Biden signed H.R. 1868 on April 14.