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Medicare sequester moratorium is extended to help relieve physicians' payments

Extension of the Medicare sequester moratorium through 2021 will help physicians and providers to continue care for their patients while receiving the reimbursement they deserve.


On April 13th, the Congress extended the current 2% Medicare sequester moratorium established by Coronavirus Aid, Relief, and Economic Security Act, also known as CARES, through the end of 2021.


The moratorium implemented last year, “Medicare Sequester COVID Moratorium Act” would have expired on March 31st, 2021.


Yesterday, President Biden signed this legislation giving a relief to physicians and providers on a still going convulsive COVID pandemic and a more complex healthcare economy.


On a statement, U.S. Centers for Medicare & Medicaid Services explained that they instructed Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1st,2021 for a short period without affecting providers cash flow. They took this measure in anticipation of possible Congressional action to extend the 2% sequester reduction suspension. MACs will have to reprocess those claims now that the suspension was extended. 


Physicians payments were reduced under Medicare sequestration. These budget cuts established that any claim received by Medicare after April 1, 2013 was subject to a 2 percent payment cut. Any drugs that were administered as part of the claim were also reimbursed with a 2 percent cut implemented.


The American Medical Association (AMA) approved this prevention of reimbursement cuts, especially at a time that physicians and other practitioners are struggling financially to maintain their medical practices and slowly recovering financially from the COVID-19 pandemic.


Healthcare facilities and their staff have already been hit hard by this pandemic and have incurred in significant expenses to treat sick patients. This added to the unprecedented losses due to the decrease in inpatient and outpatient services have set the situation for medical practices even more difficult.


Physicians and providers are struggling in this worldwide pandemic trying to maintain their hospitals and clinics afloat while making sure that they take right care of their patients. This situation was already tough to physicians trying to get their payments and make sure that they are going to get paid for their work.


The pass of this legislation to extend the moratorium on the Medicare sequester cuts will help physicians and providers to continue care for their patients while receiving the reimbursement they deserve.

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