Medicare FFS Claims: 2% Payment Adjustment Suspended (Sequestration)

Providers are reminded that Section 3709 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily suspends the 2% payment adjustment currently applied to all Medicare Fee-For-Service (FFS) claims due to sequestration. The suspension is effective for claims with dates of service from May 1 through December 31, 2020. As a result, Medicare Fee-For-Service claims, with dates of service or dates of discharge on or after May 1, 2020, will not incur a two percent sequestration reduction in Medicare payment.

Action items:

  • Share this information with appropriate staff
  • Providers should review their patient accounting systems and adjust accordingly due to this change
  • Secondary insurance plans are responsible for adjusting their systems due to this change