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CMS provides guidance on 2% cut 

CMS provides guidance on 2% cut 

WASHINGTON – CMS has instructed the Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1, 2021, for a short period, in anticipation of possible congressional action to extend the moratorium on the 2% sequestration cuts. 

“This will minimize the volume of claims the MACs must reprocess if Congress extends the suspension,” CMS wrote in a March 30 bulletin. “The MACs will automatically reprocess any claims paid with the reduction if applied if necessary.” 

The Senate on March 25 overwhelmingly passed a compromise bill that would extend the moratorium on the 2% Medicare sequestration cuts through Dec. 31, 2021. The bill has been sent back to the House of Representatives, but members are out on break until mid-April. 

The moratorium expires March 31. 

The House of Representatives passed H.R. 1868, a bill to extend the moratorium through Dec. 31, 2021, on March 19; and two senators introduced S. 748, a bill to extend the moratorium through the public health emergency, on March 15.  

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