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  • Washington Highlights

    CMS Issues Claims Hold in Anticipation of Medicare Sequester Moratorium Extension


    Andrew Amari, Hospital Policy and Regulatory Specialist

    On March 30, the Centers for Medicare & Medicaid Services (CMS) announced a temporary hold on claims until Congress takes the additional action needed to extend the moratorium on the 2% Medicare sequester. The moratorium expired March 31. In its announcement, the CMS instructed Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1, 2021, to minimize the potential need for reprocessing claims that could result from extending the moratorium. The CMS noted that the temporary claims hold will be effective for “a short period without affecting providers’ cash flow” and, if necessary, MACs will reprocess any claims paid with the reduction.

    The announcement was made following the Senate’s passage of an amendment to extend the current moratorium on the sequester, which now requires a House vote [see Washington Highlights, March 26]. It is expected that the House will take up the legislation when it returns in mid-April.