Medicare sequestration resumed April 1 with a 1% reduction

Blue Cross Blue Shield of Michigan and Blue Care Network are aligned with the Centers for Medicare & Medicaid Services’ guidance regarding Medicare sequestration reductions.

Medicare sequestration reductions resumed April 1, 2022, with a reduction of 1% through June 30, 2022.

You may recall that the U.S. Congress and President Joe Biden’s administration suspended the mandatory Medicare 2% sequestration reduction through the end of 2021. Congress passed legislation on Dec. 9, 2021, that suspended the 2% sequestration reduction through March 31, 2022, and reduced the sequestration cuts to 1% from April through June 2022.

We’ll notify you through a newsletter article or a provider alert as soon as we learn the status of sequestration reductions after June 30, 2022.

Reminder: The 1% reimbursement adjustment is applied after determining any applicable member deductible, copayment or other required member out-of-pocket costs. The change won’t affect reimbursement to health care providers who haven’t been affected by sequestration previously, such as providers of durable medical equipment, lab services providers and providers treating patients with end-stage renal disease.