Source: OhioHealth Government Relations Newsletter April 2022
On December 10, 2021, the Protecting Medicare and American Farmers from Sequester Cuts Act was passed and impacts payment for all Medicare Fee-for-Service (FFS) claims:
- No payment adjustment through March 31, 2022
- 1% payment adjustment April 1 – Thursday, June 30, 2022
- 2% payment adjustment beginning Friday, July 1, 2022.
The 1% payment reduction (sequestration) will be:
- Applied to all Medicare FFS claims with a date of service / ”through” date of service on or after April 1, 2022
- Calculated after the approved amount is determined and the deductible and coinsurance are applied
- Reported with claim adjustment reason code (CARC) 253 (Sequestration – reduction in federal payment) on the remittance advice.