Medicare Sequestration Payment Reductions

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 with dates-of-service or dates-of-discharge on or after April 1, 2013, incur a 2% reduction in Medicare payment. These are known as Medicare Sequestration Payment Reductions. The page collects American Hospital Association content on this topic.

The American Hospital Association would like to provide feedback on sections of H.R. 4822, the “Health Care Price Transparency Act of 2023,” as well as H.R. 3284, the “Providers and Payers COMPETE Act.”
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.
Now is not the time for reductions in Medicare payments to providers. Congress should pass legislation to again suspend Medicare sequester cuts, so that hospitals and health systems can continue to care for patients, families and communities.
The Issue The COVID-19 pandemic and its aftermath have resulted in historic challenges for hospitals and health systems and the communities they serve in terms of recovery and rebuilding, placing unprecedented stress on the entire health care system and its financing.
AHA urges Congress to provide support as hospitals contend with an exhausted workforce, backlogs of care deferred by the pandemic, cracks in the supply chain and a tsunami of financial challenges.
The AHA writes to express our disappointment that Congress is adjourning for its April recess without providing Medicare sequester relief or critical financial assistance for hospitals and health systems serving their communities during this unprecedented public health crisis.
AHA today urged Congress to provide immediate additional support for hospitals and health systems as COVID-19 challenges persist.
AHA urges Congress to provide immediate additional support for hospitals and health systems as COVID-19 challenges persist.
The AHA and seven other national hospital organizations turge congressional leaders to act quickly to ensure hospitals and health systems have the additional resources they need to continue to care for their communities and patients during the COVID-19 pandemic, including additional relief from…
The COVID-19 pandemic has resulted in historic challenges for hospitals and health systems and the communities they serve, placing unprecedented stress on the entire health care system and its financing.