LUTZ BUSINESS INSIGHTS

 

Medicare Sequestration Update

medicare sequestration update

julianne kipple, healthcare shareholder

 

The Budget Control Act of 2011 (BCA; P.L. 112-25) established a Medicare Sequestration of 2%, which is an automatic reduction of certain federal spending as a budget enforcement tool. Originally, the sequester was supposed to be in effect from FY 2013 to FY 2021. However, most recently, the Infrastructure Investment and Jobs Act (P.L. 117-58) extended the sequester through FY 2031.

Additional legislation, including the CARES Act and the Protecting Medicare and American Farmers Act, has suspended the application of the sequester to Medicare from May 1, 2020, through March 30, 2022. It also limited Medicare reductions to 1% from April 1, 2022, through June 30, 2022. As of now, the full 2% Medicare sequestration will be in effect starting July 1, 2022.

Various hospital advocacy groups have been pushing to obtain additional relief from the Medicare payment sequester. However, the Federal Funding bill passed in March 2022 did not include any Medicare sequestration relief, although it did include some temporary relief on eligibility criteria for the 340B Drug Pricing Program.

If you have any questions, please contact us or learn more about our healthcare accounting and consulting services.

 

Sources: Congressional Research Service (March 29, 2022). Medicare and Budget Sequestration. https://sgp.fas.org/crs/misc/R45106.pdf

ABOUT THE AUTHOR

julianne kipple

402.827.2075

jkipple@lutz.us

LINKEDIN

JULIANNE KIPPLE + HEALTHCARE SHAREHOLDER

Julianne Kipple is a Healthcare Shareholder at Lutz with over 12 years of professional experience in the healthcare industry. Her expertise is in accounting and consulting services for healthcare facilities, including outsourced CFO services, Medicare and Medicaid reimbursement, and Medicaid Disproportionate Share Surveys (DSH).

AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
  • Healthcare Financial Management Association, Member
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Certified Revenue Cycle Representative
  • Certified Public Accountant
  • Certified Healthcare Financial Professional
EDUCATIONAL BACKGROUND
  • BSBA in Accounting, with high distinction, Creighton University, Omaha, NE
  • MBA, Creighton University, Omaha, NE

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