PAYGO Cuts Paused for 2022!

Another significant update for the industry, the U.S. Senate approved legislation that will pause the 4% PAYGO cuts to Medicare reimbursement from going into effect for the 2022 year. This news is a big win for the industry, and we could potentially see payment increases this year thanks to this pause. President Biden is expected to sign the legislation. 

Update on the 2% Sequestration Cuts 

On December 7, 2021, the House of Representatives passed the Protecting Medicare and American Farmers from Sequester Cuts Act (S. 610). This legislation not only pauses the PAYGO cuts, but it’ll also extend the current pause on 2% sequestration cuts.

Here’s what you can expect:

  • The pause will continue to the end of March 2022
  • April 1, 2022, to June 30, 2022, it will resume with a 1% reduction
  • In July 2022, the full 2% sequester will resume 

Then to offset this deferral, the legislation will increase cuts for one year in 2030. This bill is now on its way to the Senate for consideration. 

What to Expect for 2022

Thank you, AAHomecare, for keeping us updated on these changes and your continued efforts advocating for our industry. As we get ready to begin 2022, we need to continue to educate lawmakers on the importance of sustainable reimbursement rates for DME and HME, especially as the industry grows and changes with increased product costs and operational expenses.  

Working Together

The Medbill team is committed to our customers by helping them stay informed on upcoming regulations and changes that can impact their business. Additionally, we’re here to help you overcome your billing challenges and help you succeed in the year. Contact us to learn more about how we can help you.