Congress extends 2% Medicare sequester moratorium through Dec. 31, 2021

Congress passed MGMA-supported legislation tonight that extends the current 2% Medicare sequester moratorium established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act through the end of 2021. Without further congressional action, the moratorium was set to expire after March 31, 2021. President Biden is expected to sign this bill into law shortly.

On March 30, the Centers for Medicare & Medicaid Services (CMS) instructed Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1 for a short period of time until the legislation passed the House of Representatives in order to avoid reprocessing. Once the bill is signed into law, MGMA expects MACs to begin processing those claims.

The outstanding issue of the additional 4% Medicare spending cut stemming from the budgetary effects of the American Rescue Plan still remains. MGMA will continue to advocate to prevent these cuts from taking effect in 2022.