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Congress Passes Law to Prevent Medicare Cuts

11 Dec 2021 10:26 AM | Zachary Edgar (Administrator)

Congress has officially passed legislation aimed at offsetting most of a planned 3.75% cut to the conversion factor under Medicare Part B. The changes also avert across-the-board budget cuts and delay the return of the 2% "sequester" reduction next year.

The legislation was first passed by the House of Representatives on Dec. 7, with its companion bill approved in a 59-35 bipartisan vote in the U.S. Senate on Dec. 9.

The bill sets out three major (but temporary) relief provisions:

  • CMS will receive a 3% appropriation for 2022 to partially offset its planned 3.75% cut to the conversion factor used to set payment for codes used by providers.
  • Implementation of a looming 4% across the board "pay as you go" cut mandated through budget rules will be postponed until 2023.
  • A temporary moratorium on the 2% Medicare sequestration cut required by law since 2011 as part a deficit spending mechanism will be continued through part of 2022. The moratorium will last until April, when a 1% sequestration will return, with the full 2% sequestration reduction beginning in July. Given that sequestration cuts are baked into the Medicare system, the temporary reprieve has amounted to a small payment increase for providers since the moratorium was put in place in 2020.


About Me

Zachary Edgar JD, LLM is Therapy Comply's managing partner.  Zachary is a healthcare attorney who specializes in federal and state healthcare regulatory issues particularly for physical, occupational, and speech therapy practices.  

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