Medicare Sequestration Payment Reductions

The Budget Control Act of 2011 requires, among other things, mandatory across-the-board reductions in certain types of federal spending, also known as sequestration. Medicare claims with dates-of-service or dates-of-discharge on or after April 1, 2013, incur a 2% reduction in Medicare payment. These are known as Medicare Sequestration Payment Reductions. The page collects American Hospital Association content on this topic.

Sep 13, 2022
Now is not the time for reductions in Medicare payments to providers. Congress should pass legislation to again suspend Medicare sequester cuts, so that hospitals and health systems can continue to care for patients, families and communities.
Sep 13, 2022
The Issue The COVID-19 pandemic and its aftermath have resulted in historic challenges for hospitals and health systems and the communities they serve in terms of recovery and rebuilding, placing unprecedented stress on the entire health care system and its financing.
May 26, 2022
AHA urges Congress to provide support as hospitals contend with an exhausted workforce, backlogs of care deferred by the pandemic, cracks in the supply chain and a tsunami of financial challenges.
Apr 7, 2022
The AHA writes to express our disappointment that Congress is adjourning for its April recess without providing Medicare sequester relief or critical financial assistance for hospitals and health systems serving their communities during this unprecedented public health crisis.
Mar 23, 2022
AHA today urged Congress to provide immediate additional support for hospitals and health systems as COVID-19 challenges persist.
Mar 23, 2022
AHA urges Congress to provide immediate additional support for hospitals and health systems as COVID-19 challenges persist.
Feb 8, 2022
The AHA and seven other national hospital organizations turge congressional leaders to act quickly to ensure hospitals and health systems have the additional resources they need to continue to care for their communities and patients during the COVID-19 pandemic, including additional relief from…
Jan 31, 2022
The COVID-19 pandemic has resulted in historic challenges for hospitals and health systems and the communities they serve, placing unprecedented stress on the entire health care system and its financing.
Dec 9, 2021
As urged by the AHA, the Senate today in a 59-35 bipartisan vote passed legislation that would stop Medicare cuts to hospitals, physicians and other providers from going into effect early next year.
Dec 7, 2021
A legislative package could be voted on in the House as soon as tonight that would stop upcoming Medicare cuts to hospitals, physicians and other providers that are scheduled to kick in early next year.