Schneider’s Bipartisan Legislation to Prevent Cuts to Hospital Payments During COVID Heads to President’s Desk

WASHINGTON- Tuesday, Congressman Brad Schneider (IL-10)'s Medicare Sequester COVID Moratorium Act was included in H.R. 1868 as it passed the House and headed to the President's desk for signature. The bipartisan legislation will prevent annual 2% cuts to hospital payments through the end of 2021. The bill was passed by the House in March, amended by the Senate, and the House approved the Senate's amendment Tuesday.

'In the middle of a once-in-a-century pandemic, Congress is taking the steps necessary to make sure that we have the backs of the doctors, nurses, administrators, and more on the frontlines of our hospitals fighting this terrible virus. By delaying Medicare sequestration and the consequent economic cuts to hospitals, Republicans and Democrats are working together to provide a little bit of stability amid the uncertainty of COVID-19 and keep critical health care jobs,' said Congressman Brad Schneider.

Since 2011, Medicare payments have been subject to a 2% reduction, known as the Medicare sequester. However, recognizing our providers' heroic work and dire circumstances, Congress delayed the Medicare sequester through April 1, 2021, as part of the Consolidated Appropriations Act, 2021. Unfortunately, the pandemic has not waned, and our providers now again face revenue cuts when hospital operating margins are down an estimated 18.7%, according to the American Hospital Association.

Schneider's original bill, H.R. 315, the Medicare Sequester COVID Moratorium Act, would delay the Medicare sequester through the duration of the public health emergency, ensuring that providers can stay focused on treating and eradicating COVID-19 instead of worrying about their bottom line. H.R. 1868 will delay the Medicare sequester through December 31, 2021 and offsets the cost of that sequester moratorium extension.

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