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Medicare Sequester Extension

By Michael Criscione, Elizabeth DeRita .

On December 10, 2021, the President signed into law the Protecting Medicare and American Farmers from Sequester Cuts Act (the “Act”), which delayed the Medicare sequester and made other changes to Medicare payments.

Prior to the Act, the Medicare sequester suspension was set to expire on December 31, 2021. The new legislation has extended Medicare exemption from sequestration to March 31, 2022.

Other changes to Medicare payments enacted by the Act include:

  • A reinstatement of the sequester effective April 1, 2022, through June 30, 2022, at a rate reduction of 1%.
  • An increase of the sequestration rate to a reduction of 2% effective July 1, 2022.
  • For the first six months of fiscal year 2030, the Medicare payment sequester will be a reduction of 2.25%.
  • For the last six months of fiscal year 2030, the Medicare payment sequester will be a reduction of 3%.

A link to the full text of the Act can be found here.

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