Once again, the U.S. Centers for Medicare and Medicaid Services (CMS) is giving healthcare providers a temporary reprieve from a 21% reimbursement cut due to go into effect on April 1.
The cuts under the Medicare Physician Fee Schedule (MPFS) are required because of the failure of the U.S. Congress to pass a temporary fix to the sustainable growth rate (SGR) formula before adjourning for its spring recess. The cut is due to a flaw in the SGR formula, and Congress has passed a series of temporary fixes rather than come up with a long-term solution.
Believing that Congress will address the SGR problem when it reconvenes, CMS has instructed its contractors to hold claims for services under the MPFS system for the first 10 business days of April.
The hold will only affect claims for services dated April 1 and forward, according to CMS. In addition, CMS said the hold would minimally affect provider cash flow, because clean electronic claims are not paid any sooner than 14 calendar days after the date of receipt.
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