AHA, Others Urge Congress to Prevent the Statutory PAYGO Sequester from Taking Effect

November 30, 2022

Dear Leader Schumer, Leader McConnell, Speaker Pelosi and Leader McCarthy:

The undersigned health care organizations are writing to urge Congress 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.

Like individuals and families across America, physicians, nurses, hospitals and health systems, long-term care hospitals, inpatient rehabilitation facilities, skilled nursing facilities, home health agencies and hospices are dealing with difficult challenges. These challenges include high inflation and significant increases in costs from workforce shortages, drugs, equipment and supplies (including food and energy costs) that threaten financial stability and the ability to provide access to high-quality health care services. This is exacerbated by supply chain shortages, backlogs in deferred care and government underpayment.

Failure to waive Statutory PAYGO sequester cuts would result in $38 billion in Medicare cuts in fiscal year 2023 which would have a devastating impact on the health care field, destabilizing health care access.

In previous years Congress has stepped in to pass legislation to avoid triggering PAYGO. Congress once again needs to waive these cuts, to prevent them from taking effect in 2023. We urge Congress to prevent these cuts. Now is not the time for reductions in Medicare payments to providers.

Congress must enact into law provisions to prevent a Statutory PAYGO sequester from taking effect at the end of this session of Congress, preventing 4% cuts to Medicare from taking effect so our nation’s health care providers can continue to care for patients, families and communities.

Sincerely,