Senate Extends Medicare Sequester Moratorium

Last week, the Senate voted to pass an agreement reached by Leaders Schumer and McConnell to extend the two percent Medicare sequester moratorium that would have expired on April 1. The bipartisan legislation will provide a nine-month extension of the moratorium, through December 31. It also contains some technical corrections related to rural health clinics and disproportionate share hospitals.

The House of Representatives passed different legislation earlier that would both extend the moratorium through the end of the pandemic and eliminate an additional four percent Medicare sequester scheduled to take effect on January 1, which was required by PayGo rules to offset part of the cost of passing the American Rescue Plan COVID-19 stimulus package. Consequently, the House will need to pass the Senate language when it returns from its Easter recess in mid-April. The House is expected to vote favorably, and the Centers for Medicare & Medicaid Services (CMS) is expected to hold off on processing April claims until then to avoid making reduced payments.