Congress passes legislation to largely prevent Medicare cuts slated for Jan. 1, 2022

Following is an update from our partners at Oregon Medical Group Management Association regarding the prevention of Medicare cuts.

On December 9, 2021, Congress passed MGMA-supported legislation which largely averts Medicare physician cuts scheduled to go into effect on Jan. 1, 2022. Specifically, the legislation:

• Mitigates 3% of the -3.75% impact of the previously delayed 2021 budget neutrality adjustment to the Medicare physician fee schedule conversion factor through CY 2022;
• Nullifies the imposition of the 4% statutory pay-as-you-go sequester resulting from the American Rescue Plan Act through CY 2022;
• Delays the reinstatement of the existing 2% Medicare sequester through March 2022, and phases in a 1% sequester through June 2022; and
• Delays cuts to physician office laboratories and the next round of data reporting.

As a result, the legislation passed prevented Medicare from imposing 9% of the 9.75% planned payment reductions to physician practices scheduled for Jan. 1, 2022.