Updated on 04/01/2021

Temporary Claims Hold

Author: Michael Tidd LVN, HCS-D, COS-C

CMS has directed al Medicare Administrative Contracts (MACs) to hold all claims with dates of service on or after April 1, 2021.  This is an action to avoid withholdings from claims related to the Sequestration Moratorium Extension passed by congress late last week.  While the bill has passed, it has not yet been signed by President Biden and therefore cannot be enacted.  If CMS did not place this temporary hold on claim payment, they would be required to withhold the 2% sequestration and then reimburse agencies at a later point in time.  Holding the claims, while an inconvenience to agencies, prevents the efforts by MACs and agencies in trying to regain the 2% after the law goes into effect.  The MACs will automatically process claims submitted after President Biden takes action on the law.  If he signs the law, claims will be paid in full without holding the 2% sequestration reduction.   President Biden is expected to sign the bill, but if he fails to so the claims will be paid with the 2% sequestration withheld.