Medicare claims will be held pending Congressional action on sequester cut

CMS has instructed Medicare administrative contractors to hold all claims with dates of service on or after April 1, pending action from Congress on a planned 2 percent Medicare payment cut, according to the American Hospital Association.

If claims are paid with the reduction applied, CMS said it will automatically reprocess them as necessary.

The Senate passed legislation March 25 that will delay a federally mandated 2 percent Medicare sequester cut through the end of the year. The House is expected to take up the bill the week of April 13 when it returns to Capitol Hill. 

Without action from Congress, the 2 percent sequester cut is expected to take effect April 1. 

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