On April 14, 2021, the House passed the legislation that pauses the 2% Sequestration through December 31, 2021. It is expected the President will sign the new legislation shortly. The past year has been a financial struggle for many health care organizations and the 2% does make a difference.
Now we will see if the 4% cut to Medicare payments that are scheduled under the Statutory Pay As You Go Act, will be put into play if spending continues and reaches a new threshold. The latest $1.9 trillion COVID-19 rescue package may initiate the cuts.
The full 2010 Pay As You Go legislation can be reviewed at:
https://www.congress.gov/111/plaws/publ139/PLAW-111publ139.pdf
