CMS Announces Temporary Claims Hold Pending Congressional Action on 2% Sequestration Cuts to Medicare Providers

April 9, 2021

CMS announced on March 30 a temporary hold on claims until the House extends the moratorium on the 2% across-the-board Medicare payment cuts—also known as Medicare sequestration cuts—to all providers that serve Medicare patients.

CMS instructed Medicare Administrative Contractors (MACs) to hold all claims with dates of service on or after April 1 to minimize the potential need to reprocess the claims if Congress extends the moratorium. CMS stated that the temporary claims hold will be effective for a short period without affecting providers’ cash flow and that MACs will automatically reprocess any claims paid with the reduction if necessary.

The announcement follows Senate passage of legislation to extend the moratorium on the Medicare sequestration cuts through the end of the calendar year. The House likely will vote on the Senate-passed measure when the chamber returns from recess before sending it to President Biden’s desk for his signature.