CMS Suspends Claims Process While Congress Ponders Sequestration

Posted Saturday, April 3, 2021

In anticipation of congressional action to extend the 2% sequester reduction suspension on final claim payments, the Centers for Medicare & Medicaid Services (CMS) issued a notification on March 30, 2021 stating it has instructed the Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1, 2021.

CMS has stated the claims hold will be for a short period and will not affect cash flow for providers. The hold is intended to minimize the volume of claims the MACs will have to reprocess if Congress extends the suspension. The MACs will automatically reprocess any claims to which the reduction is applied.

Any questions may be directed to Teresa Mack at

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