Signed into law on April 14, 2021, An Act to Prevent Across-the-Board Direct Spending Cuts, and for Other Purposes, extends the suspension of the sequestration 2% reduction in provider payments applied to all Medicare Fee-for-Service (FFS) claims from March 31 to December 31, 2021.

This extension follows previous suspension periods enacted through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (May 1 through December 31, 2020) and the Consolidated Appropriations Act, 2021 (extended the suspension through March 31, 2021).

Medicare Administrative Contractors will:

  • Release any previously held claims with dates of service on or after April 1, 2021
  • Reprocess any claims paid with the reduction applied