The extension of the Medicare sequester moratorium through 2021 will help physicians and providers continue caring for their patients. It will also ensure they receive the reimbursement they deserve.
On April 13, Congress extended the current 2% Medicare sequester moratorium established by the Coronavirus Aid, Relief, and Economic Security Act, also known as CARES, through the end of 2021.
The moratorium implemented last year, the “Medicare Sequester COVID Moratorium Act”, would have expired on March 31, 2021.
Yesterday, President Biden signed this legislation to relieve physicians and providers during the ongoing COVID-19 pandemic. It also addresses challenges in the more complex healthcare economy.
In a statement, the U.S. Centers for Medicare & Medicaid Services (CMS) explained that they instructed Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1, 2021. This will be for a short period without affecting providers’ cash flow. They took this measure in anticipation of possible Congressional action to extend the 2% sequester reduction suspension. MACs must reprocess those claims now that the CMS extended the suspension.
Medicare sequestration reduced physicians’ payments. These budget cuts established that any claim received by Medicare after April 1, 2013, was subject to a 2% payment cut. Any drugs administered as part of the claim were also reimbursed with a 2% cut implemented.
AMA approves Medicare cut moratorium, easing financial strain on post-pandemic physicians
The American Medical Association approved this prevention of reimbursement cuts. This decision comes as physicians and other practitioners struggle financially to maintain their medical practices. They are also slowly recovering financially from the COVID-19 pandemic.
Healthcare facilities and their staff have already been hit hard by this pandemic. They have incurred significant expenses to treat sick patients. This added to the unprecedented losses due to the decrease in inpatient and outpatient services, making the situation for medical practices even more difficult.
Physicians and providers are struggling in this worldwide pandemic, trying to keep their hospitals and clinics afloat and ensure they provide the proper patient care. This situation was already challenging for physicians trying to get their payments and ensure they were paid for their work.
The passing of this legislation to extend the moratorium on the Medicare sequester cuts will help physicians and providers to continue caring for their patients while receiving the reimbursement they deserve.
