Sequestration Suspended Starting May 1st
Section 3719 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) temporarily suspended the 2 percent payment reduction currently applied to all Medicare fee-for-service (FFS) claims due to sequestration, a federal budgetary cut that has been in place since 2013. This revision in payments will be made automatically for dates of service from May 1st through Dec. 31, 2020.
This means that the 2 percent payment reduction that would have otherwise been applied to Medicare payments to providers and managed care plans during this timeframe will not be applied. However, to compensate for the suspension, the sequestration provision will be extended by an additional year through the end of 2030. While providers will see the benefit of the provision in their FFS revenue, how this will impact reimbursement provided by Medicare managed care plans may vary and may be governed by plan-provider agreements.
This financial relief provision and several other program updates are reflected in an updated version of LeadingAge NY's COVID-19 Grants, Loans & Advance Funding Opportunities for Not-for-Profit Providers guide. Please note that the guide now includes not only latest updates on existing opportunities, but also Department of Housing and Urban Development (HUD) programs. The guide can be accessed here.