The Centers for Medicare & Medicaid Services (CMS) announced that that the 2% Medicare reimbursement cut is suspended through the remainder of 2021. According to Senators Shaheen and Collins, this will prevent approximately $12.3 billion in Medicare reimbursement cuts through the remainder of 2021.

On April 15^th, President Joe Biden signed an Act to Prevent Across-the-Board Direct Spending Cuts, and for Other Purposes.  This law extends the suspension period through the end of 2021 due to the COVID-19 pandemic. The bill started in the Senate. It was passed by a 90 to 2 vote. In the House of Representatives, the bill was passed in a 384 to 38 vote. It was then sent to President Biden’s desk for approval.

The extension is being celebrated by providers. Groups like the American Medical Association (AMA), Federation of American Hospitals (FAH), American College of Physicians (ACP), and America’s Health Insurance Plans (AHIP) all supported extending the Medicare sequester cut.

Susan R. Bailey, MD, President of the American Medical Association said, “The Senate and House, Democrats and Republicans, have overwhelmingly acknowledged that cutting Medicare payments during a pandemic is ill-conceived policy. Physician practices are already distressed, and arbitrary 2 percent across-the-board Medicare cuts would have been devastating.”