A Big Win for the Industry – Medicare Sequester Cuts Paused!

The House of Representatives extended the pause on the 2% Medicare sequester cuts through the remainder of this year, 2021. This is a major win for the DME and all medical industries! President Biden is expected to sign the H.R.1868 shortly. 

$158 Million More in Medicare Payments

On Tuesday, April 13, the House passed the amended version of H.R. 1868. This extension will result in approximately $158 million more in Medicare payments to DME and HME suppliers over the rest of this year (based on current Medicare data). That means DME and HME suppliers will receive the additional $158 million on top of the previous $193 million already provided from the paused cuts from May 2020 through March 2021.

CMS Held Off Claims

On March 31, the Centers of Medicare & Medicaid Services (CMS) announced a temporary pause for all Medicare claims (with service dates on or after April 1, 2021) without affecting the provider’s cash flow. Read that announcement here.

$2 Billion in “Bottom Line” Policy Wins

Thank you, AAHomecare, for providing the industry with this update. You can read their March 24 AAH Insider email to learn more about the more than $2 billion in “bottom line” advocacy success here

Quote from AAHomecare’s President and CEO

“Keeping the 2% sequester cuts on hold for the remainder of the year will help offset the new costs and operational challenges associated with serving patients brought on by the pandemic,” said Tom Ryan, AAHomecare president, and CEO. “This bill is the latest example of the terrific bipartisan Congressional support for healthcare providers over the past year, and these measures have been especially welcome by the HME community.” 

“I’m especially proud of the thousands of HME suppliers who reached out to their legislators to seek support for extending the sequester moratorium,” continued Ryan. “The volume and passion of your outreach on this issue has been exceptional.”

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