To prevent across-the-board direct spending cuts, and for other purposes.
Apr 14, 2021
Statute: 135 Stat. 251
Became law: Apr 14, 2021
Apr 14, 2021
Statute: 135 Stat. 251
Became law: Apr 14, 2021
Summary
Stops automatic spending cuts to Medicare from happening by extending the temporary suspension period through the end of 2021.
What problem does this solve?
Automatic spending cuts to Medicare were scheduled to restart, which would have reduced payments to doctors and hospitals during a public health crisis. This law prevents those cuts by delaying them until the end of 2021, giving healthcare providers more financial stability.
What does this law do?
Extends pause on Medicare spending cuts
Extends the temporary suspension of the 2% automatic Medicare spending cuts (sequestration) from March 31, 2021, to December 31, 2021.
Adjusts future spending cuts to pay for the extension
Changes the formula for how Medicare sequestration will be applied in a future fiscal year to offset the cost of the current suspension.
Fixes payment rules for rural health clinics
Makes technical corrections to how per-visit payment amounts are calculated for rural health clinics, ensuring they are paid correctly under rules from a previous law.
Corrects payment rules for hospitals serving low-income patients
Adds a technical correction to ensure a grandfathered rule continues to apply for payment adjustments to certain hospitals with a high number of low-income patients.
Who does this affect?
- Hospitals and healthcare providers receiving Medicare payments
- Medicare beneficiaries
What is the real world impact?
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Provides financial relief to healthcare providers
Prevents a 2% cut in Medicare payments to hospitals and doctors, helping them stay financially stable while they continue to deal with the effects of the COVID-19 pandemic.
When does this start?
The changes in this law take effect as if they were included in previous laws, such as the CARES Act and the Consolidated Appropriations Act, 2021.
Medicare spending cut suspension
The pause on the 2% Medicare sequestration cut is extended through December 31, 2021.