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Senate Approves PAYGO and Sequester Legislation

Breaking News from AAHomecare


The U.S. Senate has just approved legislation that keeps across-the-board 4% PAYGO cuts to Medicare reimbursement from taking effect in 2022.

As we noted in yesterday’s update on House passage of S. 610, the measure also extends the current pause on 2% sequestration cuts through March 2022, and then resumes with a 1% reduction from April 1, 2022 to June 30, 2022. The full 2% sequester will resume starting in July 2022.  To offset this extended deferral, the legislation increases the cuts for one year in 2030.

“This is a very positive development for both HME suppliers as well as the full scope of healthcare providers who would have been impacted by these cuts,” said Tom Ryan, AAHomecare president and CEO. “With the threat of these cuts now out of the way, we can turn our attention back to advocating for Medicare reimbursement rates for HME that reflect the increased product costs and new operational expenses that suppliers are facing.”

“Thanks to the HME stakeholders who helped raise awareness on these cuts during our recent Virtual Washington Legislative Conference and through thousands of letters to Capitol Hill on the issue,” added Ryan.  “We will need an even stronger push for sustainable reimbursement rates if CMS doesn’t deliver them in the pending DME rule.”

President Biden is expected to sign the legislation. See the full text of S. 610 here.

See text of S. 610 here.

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