Medicare Sequestration (2% Payment Cut) Suspended Through December 2021

Members & Publications

April 19, 2021

On April 14, President Biden signed legislation extending the suspension of Medicare sequestration cuts through the end of 2021.  Sequestration mandates a 2% reduction to payment, which your Academy has advocated against, particularly during the COVID-19 pandemic.

The previous suspension of sequestration expired on April 1 and, as AAPM&R previously announced, Medicare instructed its contractors to hold all claims provided on or after the expiration date in anticipation of a bill that would extend the suspension. 

Medicare has since instructed contractors to release any previously held claims with dates of service on or after April 1 and reprocess any claims that included the 2% reduction.  Though there may be some delay due to volume, members can expect that delayed claims will be paid by Medicare in the coming weeks. 

Legislation Introduced to Alleviate Impact of Conversion Factor Cut for 2021

Nov 09, 2020

Last month, two bills were introduced in the House proposing solutions to the estimated 10.6% Physician Fee Schedule conversion factor cut expected to go into effect January 1, 2021.  The bills offer some relief to the cut, but do not reflect a comprehensive or long-term solution.  AAPM&R has therefore chosen to remain neutral regarding these bills. 

Your Academy continues to advocate for a permanent solution to the conversion factor cut while maintaining the important payment increases to office and outpatient evaluation and management services.