Blog | Medicaid Payment and Reimbursement

Analysis: Medicare sequester extended as part of debt ceiling deal

Blog | Medicaid Payment and Reimbursement

Analysis: Medicare sequester extended as part of debt ceiling deal

  • CQ reported July 22: “House leaders released legislation late Monday that would implement the two-year accord on appropriations and the debt ceiling struck earlier in the day by the White House and top Democrats and Republicans on Capitol Hill.”
  • Under the deal, the 2% Medicare sequester is extended through 2029.  

Congressional Quarterly reported on July 22: “House leaders released legislation late Monday that would implement the two-year accord on appropriations and the debt ceiling struck earlier in the day by the White House and top Democrats and Republicans on Capitol Hill.

The 26-page draft bill, expected to get a House vote Thursday, calls for raising limits on discretionary spending by $321 billion over two years, compared to the strict caps imposed under a 2011 deficit reduction law (PL 112-25),” continued the CQ article.

Less than a quarter of the cost of increased spending, or $77.4 billion, would be offset with an extension of fees on cargo and passengers arriving in the U.S. and automatic cuts to Medicare and other programs that are currently set to expire in 2027.”

Takeaway

The deal struck Monday is a sign of progress that the budget could be resolved with less drama and uncertainty than in prior years.

As Speaker Nancy Pelosi (D-Calif.) would like a floor vote on the deal by July 25, the Senate should get it before its Aug. 2 recess.

Providers need to pay attention to the offsets. Under the deal, the 2% Medicare sequester, currently is scheduled to expire in 2027.  However, under the deal, the sequester would be extended through 2029.  

About the Authors

Chad Mulvany, FHFMA

is director, healthcare finance policy, strategy and development, HFMA’s Washington, D.C., office, and a member of HFMA’s Virginia-Washington, D.C., Chapter.

 

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