Medicare FFS Claims: 2% Payment Adjustment (Sequestration) Suspended through December

On April 16, 2021, CMS announced that the 2% Payment Adjustment (Sequestration) for Medicare FFS Claims have been suspended through December:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act suspended the sequestration payment adjustment percentage of 2% applied to all Medicare Fee-for-Service (FFS) claims from May 1 through December 31, 2020. The Consolidated Appropriations Act, 2021, extended the suspension period to March 31, 2021. An Act to Prevent Across-the-Board Direct Spending Cuts, and for Other Purposes, signed into law on April 14, 2021, extends the suspension period to December 31, 2021.

Medicare Administrative Contractors will:

• Release any previously held claims with dates of service on or after April 1
• Reprocess any claims paid with the reduction applied

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