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Medicare Fee-for-Service claims: 2% payment adjustment suspended through 2021

Newly passed legislation continues payment reduction suspension for Medicare providers.

Cite this
American Psychological Association. (2021, April 16). Medicare Fee-for-Service claims: 2% payment adjustment suspended through 2021. http://www.apaservices.org/practice/clinic/medicare-fee-for-service

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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