News: CMS 2% payment adjustment suspended and PHE extended

CMS announced the suspension of the sequestration payment adjustment of 2% to Medicare Fee-for-Service claims from May 1, 2020, through December 31, 2020. An Act to Prevent Across-the-Board Direct Spending cuts, and for Other Purposes, signed into law on April 14, 2021, extends the suspension period to December 31, 2021.

CMS notes that Medicare Administrative Contractors will release any previously held claims with dates of service on or after April 1, as well as reprocess any claims paid with the reduction applied.

The public health emergency (PHE) has also officially been extended. The PHE declaration was extended on April 15, and will likely remain in place throughout the remainder of 2021. States will receive 60 days’ notice before the end of the PHE so they can prepare for the end of emergency authorities and the resumption of pre-PHE rules.

Editor’s note: The CMS announcement about the sequestration payment suspension can be found here. The continued monitoring of the PHE status can be found here.