Protecting Medicare and American Farmers from Sequester Cuts Act
Dec 10, 2021
Statute: 135 Stat. 1506
Became law: Dec 10, 2021
Dec 10, 2021
Statute: 135 Stat. 1506
Became law: Dec 10, 2021
Summary
Prevents automatic spending cuts to Medicare, helps doctors with payment changes, and creates a fast process for Congress to raise the national debt limit.
What problem does this solve?
The country faced automatic spending cuts to Medicare that could hurt patients and doctors, and a political disagreement threatened the government's ability to pay its bills. This law stops the immediate cuts, gives more support to healthcare providers, and creates a special, quicker way for Congress to raise the debt limit.
What does this law do?
Creates a fast-track process to raise the debt limit
Sets up a special, temporary procedure allowing the Senate to pass a joint resolution to increase the national debt limit with a simple majority vote, bypassing the usual 60-vote requirement.
Extends pause on Medicare spending cuts
Continues the temporary stop on the 2% automatic spending cut (sequestration) for Medicare payments through March 31, 2022.
Phases in smaller Medicare cuts before returning to normal
Applies a smaller 1% cut to Medicare payments from April 1, 2022, to June 30, 2022, before the full 2% cut is expected to return.
Increases payments for doctors in 2022
Provides a 3% increase in payments for services provided by doctors and other healthcare professionals under Medicare for the year 2022.
Prevents other automatic budget cuts in 2022
Adjusts the Pay-As-You-Go (PAYGO) rules to prevent a separate set of automatic spending cuts from happening in 2022 by moving the budget deficit calculation to 2023.
Delays a new cancer treatment payment model
Pushes back the start date for a new Medicare payment system for radiation oncology treatments from January 1, 2022, to January 1, 2023.
Postpones cuts to clinical lab payments
Prevents payment cuts for clinical laboratory services from taking place in 2022 and delays the next data reporting period for these services by one year.
Increases future Medicare cuts to pay for current relief
Schedules higher automatic spending cuts for Medicare in the year 2030, increasing them to 2.25% and then 3% to help pay for the current delays.
Who does this affect?
- Medicare beneficiaries
- Healthcare providers
- American taxpayers
What is the real world impact?
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Prevents disruptions to healthcare services
Stops automatic payment cuts to Medicare providers, like doctors and hospitals. This ensures that seniors and other patients can continue to get the care they need without interruption, especially following a public health crisis.
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Creates a workaround to raise the debt ceiling
Establishes a special, one-time fast-track process for the Senate to raise the national debt limit with a simple majority vote. This was a political compromise designed to avoid a national default when the two parties could not agree on a traditional path forward.
When does this start?
This law includes several different timelines and deadlines for its various provisions.
Debt limit increase procedure
A special joint resolution to raise the debt limit must be introduced by December 31, 2021, and cannot be considered in the Senate after January 16, 2022.
Medicare sequestration pause ends
The temporary stop on 2% Medicare payment cuts ends on March 31, 2022.
Reduced Medicare cuts begin
A smaller 1% sequestration cut on Medicare payments is in effect from April 1, 2022, through June 30, 2022.
Physician payment increase
A 3% payment increase for physician services under Medicare is effective for services provided between January 1, 2022, and January 1, 2023.