Medicare Fee-for-Service Claims: Two Percent Payment Adjustment Suspended Through December

Last Updated: Apr 20, 2021

The Coronavirus Aid, Relief, and Economic Security (CARES) Act suspended the sequestration payment adjustment percentage of 2 percent applied to all Medicare Fee-for-Service (FFS) claims from May 1 through Dec. 31, 2020. Then, the Consolidated Appropriations Act, 2021, extended the suspension period to March 31, 2021. Most recently, an Act to Prevent Across-the-Board Direct Spending Cuts, and for Other Purposes, signed into law on April 14, 2021, extends the suspension period to Dec. 31, 2021.

According to the Centers for Medicare and Medicaid Services, Medicare Administrative Contractors will:

  • Release any previously held claims with dates of service on or after April 1

  • Reprocess any claims paid with the reduction applied

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