Medicare Sequestration Suspension Extended

On Wednesday, April 13, 2021, President Joe Biden signed legislation into law that extends the 2% Medicare sequestration suspension through December 31, 2021. Without further congressional action, the suspension was set to expire after March 31, 2021.

On March 30th, CMS had instructed Medicare Administrative Contractors (MACs) to hold all claims  hold all claims with dates of service on or after April 1 for a short period of time until the legislative action was taken, in order to avoid reprocessing claims. With the extension signed into law, MACS should soon begin processing the claims on hold.

Michele Krpata, BSW, CPC, CPMA

Compliance Officer, Quality Reporting Analyst