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Medicare 2% Sequestration Suspension Extended to 12/31/21


In December 2020, we posted the below message regarding the Coronavirus Aid, Relief, and Economic Security (CARES) Act suspended the payment adjustment percentage of 2% applied to all Medicare Fee-For-Service (FFS) claims from May 1 through December 31.  The Consolidated Appropriations Act, 2021, signed into law on December 27, extends the suspension period to March 31, 2021.  

March 2021 Update:

In anticipation of possible Congressional action to extend the 2% sequester reduction suspension, we instructed the Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1, 2021, for a short period without affecting providers’ cash flow. This will minimize the volume of claims the MACs must reprocess if Congress extends the suspension; the MACs will automatically reprocess any claims paid with the reduction applied if necessary.

April 2021 Update:

The suspension of the 2% Medicare Sequestration has been extended through 12/31/21. 

Please reach out to your Provider Service Representative should you have any questions.