LUTZ BUSINESS INSIGHTS
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 + 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
- Healthcare Accounting & Consulting
- Medicare & Medicaid Reimbursement
- Outsourced CFO Services
- Medicaid Disproportionate Share Surveys (DSH)
- Financial Support Services
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
- BSBA in Accounting, with high distinction, Creighton University, Omaha, NE
- MBA, Creighton University, Omaha, NE
- Medicare Sequestration Update
- CMS Blanket Waivers Update
- RHC Testing & Migration (RHCCTM) Program Reminder
- Provider Relief Fund + Where Are We Now?
- Hospital Financial Governance
- Benefits of Medicare Interim Cost Report Template for Critical Access Hospitals
- Year-End Audit and Cost Report Planning, Preparation Tips
- Medicare Cost Report Electronic Filing
- Attention Kansas CAH's - Upcoming DSH Surveys
- Flex Monitoring - CAH Financial Indicators Released
- Provider Quality Reporting System (PQRS) + Merit-Based Incentive Payment System (MIPS) Transition Update
- CMS Medicare Outpatient Observation Notice (MOON) Form
- Hospital Board of Director Responsibilities
- Not-For-Profit Net Asset Classification Changes
- Healthcare Revenue Recognition & Self-Pay Contracts
- Changes in Accounting for Leases + the Impact on Healthcare Entities
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