Congress passed legislation (S610) that will reduce or delay many of the Medicare physician reimbursement cuts that were set to go into effect Jan. 1, 2022. President Biden signed S610 into law on Dec. 10.
The law will reduce or delay the following Medicare reimbursement cuts (via McDermott+ Consulting):
- Medicare Physician Conversion Factor Update
- Reduces the scheduled 3.75% cut to the Medicare conversion factor to 0.75%
- Medicare Sequester Cut Phased Reduction
- Eliminates entirely for 3 months (January-March 2022) – 0% cut
- Phases in during Q2 (April-June 2022) – 1% cut; increases in Q3 (July-December 2022) 2% cut
- Paid for by increasing the sequester in 2030
- Pay-As-You-Go Sequestration 4% Cut Delayed to 2023
- Budget scorecard deficits for both 5-year and 10-year windows are subtracted from fiscal year (FY) 2022 and added to FY 2023, effectively pushing implementation of a Pay Go sequester to 2023 – 0% cut
The law also includes language that provides the procedural mechanism permitting the Senate to raise the debt limit with a simple majority vote, which was opposed by House Republicans. Therefore, the bill passed by a mostly partisan vote of 222 – 212 in the House and 59-35 in the Senate.
The AASM continues to advocate for sustainable solutions that eliminate the annual threat to Medicare physician reimbursement rates.
For more information on Medicare and reimbursement, view the AASM coding and reimbursement resources and contact firstname.lastname@example.org with any questions. Contact email@example.com with any questions regarding advocacy or legislation.
Updated Dec. 13, 2021