On December 10, 2021, President Biden signed the bipartisan Protecting Medicare and American Farmers from Sequester Cuts Act, delaying the impending Medicare pay cuts facing physicians in 2022. Specifically, the bill continues to exempt Medicare from sequestration, which is the process of automatic, across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals, until March 31, 2022. Additionally, the bill lays out a revised timeline for payment reduction beginning in April of 2022, modifying the percentage amounts of the reduction as well as increasing the phase-in of reductions from private payor rate implementation. Among other changes related to the federal budget and debt limit, the bill temporarily extends other provisions under Medicare, including a payment increase under the physician fee schedule.

For more information about this blog post, please contact Khaled J. Klele, Ryan M. Magee, Labinot Alexander Berlajolli, or Connor Breza.