President Biden Signs Bill Staving Off Medicare Cuts

As expected, President Biden signed legislation that will delay significant cuts to Medicare providers. The devasting rate reductions that were slated to start on January 1, 2022, Congress and the President recognize that providers of all kinds, including home health agencies and hospices, continue to be historically challenged by the pandemic and unprecedented workforce shortages. This action ensures that Home Health and Hospice providers can continue serving patients and families at a time when high-quality home-based care has never been more necessary.

“The most relevant Medicare payment provisions in the new law include:

  • A three-month delay of the entire planned 2% Medicare sequester payment reductions, to be in effect January 1, 2022 – March 31, 2022(i.e. no sequester-related payment reductions in effect for first 3 months of 2022)
  • A three-month, 1% reduction in Medicare sequester payment reductions, in effect April 1, 2022 – June 30, 2022(i.e. a 1% across-the-board sequester-related payment reduction for Q2 of 2022)
  • A one-year delay until 2023 of the entire planned so-called PAYGO sequestration cuts, which were set to go into effect as a result of the budget deficit impact of the last major COVID-19 legislative relief package passed in March 2021. PAYGO cuts were estimated to be around $36 billion for Medicare providers.”

Source: NAHC Report

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