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

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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.

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