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H.R. 1868 Sequestration Bill Passes The House, Heads To President's Desk

Last night, the House passed legislation to extend the pause of the 2% Medicare sequestration cuts until December 31, 2021. (Sequestration is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.)

This is good news for HME providers and hospitals!

The 2% cuts originally took effect in 2013 but were paused by Congress last year in response to the pandemic and its effect on providers' finances.

The bill also specifically

  • applies certain modified payment limits to rural health clinics that temporarily enrolled in Medicare during the public health emergency or that applied to enroll by December 31, 2020; and
  • preserves higher Medicaid disproportionate-share hospital payments for public hospitals in California under forthcoming payment methodology changes.

VGM Government will keep you informed as more details become available. Be sure to check vgmgov.com for updates!