Reminder: 2% Medicare sequestration reduction slated to resume July 1

We’re reminding health care providers that Medicare sequestration reduction is scheduled to resume July 1, 2022, at 2%. Blue Cross Blue Shield of Michigan and Blue Care Network are aligned with the Centers for Medicare & Medicaid Services’ guidance regarding Medicare sequestration reductions.

You may recall that the U.S. Congress and Biden administration suspended the mandatory Medicare 2% sequestration reduction through March 31, 2022, and reduced the sequestration cuts to 1% from April through June 2022.

The suspension was made to offset the decrease in payments to health care providers because of the COVID-19 public health emergency. If the suspension is extended after June 30, we’ll update you with a provider alert.

Note: The 2% reimbursement adjustment is applied after determining any applicable member deductible, copayment or other required member out-of-pocket costs. The change won’t affect reimbursements to providers who haven’t been affected by sequestration previously.