The Consolidated Appropriations Act, 2021 –  Helps to Prevent or Reduce Medicare Cuts

On December 28, 2020, President Trump signed into law, a new spending bill, The Consolidated Appropriations Act of 2021. The implementation of this Act helps prevent or reduce the significant payment cuts imposed by the 2021 Medicare Physicians Fee Schedule. The Act also includes new details on the three-year delay of HCPCS add-on code G2211 and temporary suspension of Medicare sequestration.

The Consolidated Appropriations Act:

  • Provides for a one-year only increase to the Medicare physician fee schedule by 3.75% (Rather than the previously considered 11% reduction in the conversion factor).
  • Delays the implementation of the E/M complexity add-on code G2211 until 2024. (The implementation of this code is a key reason for the initial 11% drop of the conversion factor)
  • Suspension of the Medicare 2% sequestration penalty is extended through March 31, 2021.