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.

As urged by the AHA, the Senate today in a 59-35 bipartisan vote passed legislation that would stop Medicare cuts to hospitals, physicians and other providers from going into effect early next year.
A legislative package could be voted on in the House as soon as tonight that would stop upcoming Medicare cuts to hospitals, physicians and other providers that are scheduled to kick in early next year.
The AHA and seven other national organizations representing hospitals and health systems today urged congressional leaders to act before yearend to extend the moratorium on Medicare sequester cuts and prevent the Statutory Pay-As-You-Go sequester from taking effect.
The Coalition to Protect America’s Health Care, whose members include the AHA, today launched a television ad and digital campaign urging Congress to stop the forthcoming Medicare sequester cuts and statutory PAYGO sequester. 
Congress is back in Washington, D.C. this week with a number of major priorities to tackle before the end of the year. Congress could act as soon as this week on some of these year-end items so it is important that you weigh in now.
The AHA urges 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.
The COVID-19 pandemic has resulted in historic challenges for hospitals and health systems and the communities they serve. This has placed unprecedented stress on the entire health care system and its financing.
Congress and the Biden Administration continue to prepare legislative language for a roughly $1.2 trillion infrastructure package as part of an agreement reached recently between the White House and a bipartisan group of senators. As part of that process, they are deciding how to pay for the…
The House of Representatives tonight voted 384-38 to pass a bill that, among other health care provisions, would eliminate the 2% across-the-board cut to all Medicare payments, known as sequestration, until the end of 2021. To pay for the change, the bill would increase the fiscal year 2030…