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A bill that will delay a 2% across-the-board cut to Medicare rates through the rest of the year — and stop billions in payment cuts for providers — was signed into law by President Joe Biden Wednesday.
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The House on Tuesday voted to pass the measure to push the schedule cuts back. It comes about two weeks after Senators approved the proposal before adjourning for a recess.
The moratorium on the 2% sequestration of Medicare payments, which was put in place and then extended during earlier COVID-19 relief packages, expired on March 31.
The 2% sequestration reduction to Medicare payments has been in place since 2013. A 2013 analysis found that it would reduce payments to skilled nursing facilities by $9 billion over 10 years.
Long-term care and other providers have warned that providers could face collapse without ongoing sequestration relief during the coronavirus public health crisis.
“The bottom line is this: Cuts to Medicare payments will harm providers. The pandemic is not over; providers continue to bear COVID-related expenses for personal protective equipment, regular testing and increased staffing needs for instance,” LeadingAge President and CEO Katie Smith Sloan said in a statement.
She added that the measure to “delay across-the-board cuts to Medicare payments is a step in the right direction to ensure the continuation of care that older adults and their families rely on.”