New Law Delays Medicare Sequestration and Fixes RHC Grandfather Date

14 Apr New Law Delays Medicare Sequestration and Fixes RHC Grandfather Date

On April 14, President Biden signed H.R. 1868 into law fixing two important issues for CAHs. The new law extends the suspension of the 2% across-the-board Medicare sequestration through the end of the year. It also corrects some of the provisions included in the year-end spending bill that made changes to Medicare reimbursement for RHCs. The new law changes the grandfather date from December 31, 2019 to December 31, 2020. This means that all uncapped provider-based RHCs enrolled in Medicare by the end of 2020 will be grandfathered. It also allows clinics owned by hospitals with less than 50 beds that had applied to be enrolled in Medicare as an RHC by December 31, 2020 to be grandfathered. Click here for the new law.