What was once a -9 percent Medicare cut to pathologists’ total reimbursement in 2021 has now been drastically reduced to an estimated -2.25 percent next year pending congressional action. On December 20, leaders in the House and Senate announced key provisions in a $900 billion COVID-19 relief package and a $1.4 trillion federal spending bill that will keep the government open through September 2021.
In addition to government spending bills and several measures providing financial relief to Americans, the year-end legislation included sections to mitigate and reduce the Medicare cut. The legislation passed by overwhelming margins in the House and Senate on December 21. After a delay, President Trump finally signed the bill into law on December 27.
Due to Medicare policy to increase reimbursement to evaluation and management services, an overall Medicare payment decrease of -9 percent to pathology services was scheduled to take effect to maintain budget neutrality. The CAP had strongly opposed the cuts and rallied CAP members to contact their federal legislators to fight the Medicare cuts throughout 2019 and 2020.
In another section of the legislation, Congress also delayed a -2 percent budget sequester cut to Medicare that was scheduled for January 2021. The cut is delayed for three months and would apply to Medicare services beginning April 1, 2021, unless Congress delays the cut further.