The AHA today urged congressional leaders to include in year-end legislation provisions to extend the moratorium on Medicare sequester cuts and to prevent the Statutory Pay-As-You-Go Act of 2010 (Statutory PAYGO) sequester from taking effect at the end of this session of Congress. 
 
“Congress to date has provided much-needed assistance to health care providers in the form of Medicare sequester relief,” AHA wrote today to congressional leaders. “In addition, Congress has always acted to waive the Statutory PAYGO law on a bipartisan basis. Congress should extend the moratorium on the Medicare sequester and prevent a Statutory PAYGO sequester to ensure that no reductions in Medicare payments to providers occur early next year.”   
 
The Budget Control Act of 2011 requires, among other things, mandatory across-the-board reductions in certain types of federal spending, also known as sequestration. Medicare claims incur a 2% reduction. Congress has passed legislation extending the current moratorium on the cuts through Dec. 31; however, without further action, hospitals could see a $4.7 billion cut to Medicare fee-for-service payments beginning next year. 
 
Separately, the Congressional Budget Office estimated that a Statutory PAYGO sequester in fiscal year 2022 resulting from passage of the American Rescue Plan Act of 2021 would cause a 4% reduction in Medicare spending — or cuts of approximately $36 billion — if Congress does not act. Medicare fee-for-service payments to hospitals make up about one-quarter of total Medicare spending; as a result, hospital providers could see about $9.4 billion in cuts without congressional action. 
 

Related News Articles

Perspective
Public
Just 16 days from now, more than 1,000 hospital and health system leaders from across the country will arrive in Washington, D.C., for the 2025 AHA Annual…
Chairperson's File
Public
This is an incredibly dynamic and transformative time for health care. One resource I have found incredibly helpful in speaking with many of you and engaging…
Perspective
Public
Congressional lawmakers are heading home for a two-week district work period after both the Senate and House passed a revised budget resolution for fiscal year…
Headline
Story Updated April 5 at 8:30 a.m. ETThe Senate by a vote of 51 to 48 passed its revised budget resolution for fiscal year 2025 with Sens. Rand…
Headline
The Senate April 3 by a vote of 53-45 confirmed Mehmet Oz as the new administrator for the Centers for Medicare & Medicaid Services. 
Headline
The AHA and dozens of other organizations yesterday urged House and Senate sponsors of the Conrad State 30 and Physician Access Reauthorization Act to…