Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Medicare
March 19, 2021 12:11 PM

House passes bill to avert Medicare cuts, but Senate action uncertain

Jessie Hellmann
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Modern Healthcare Illustration / Getty Images

    The U.S. House of Represenatives passed legislation Friday that would prevent Medicare cuts to providers but its future is unclear in the Senate, where Republicans are bitter over the recently passed COVID-19 relief bill that passed along party lines.

    The legislation, introduced by House Budget Committee Chairman John Yarmuth (D-Ky.) and passed 246-175, would extend a pause on the 2% Medicare sequester cuts through the end of the year.

    Those cuts originally took effect in 2013 but were paused in December in response to the pandemic and its effect on providers' finances.

    Without action from Congress, the cuts will resume April 1, but hospitals are pushing hard for another extension.

    The bill also would exempt the $1.9 trillion COVID-19 relief bill from deficit-reducing requirements — known as PAYGO — that would otherwise trigger a 4% cut to Medicare payments and other federal programs unless Congress passes spending cuts by the end of the year.

    The waiver is another priority for hospitals, but it's unclear whether the Yarmuth bill can pass the Senate, where Democrats hold a narrow majority and need Republican support for passage. In the House, 29 Republicans voted for the bill.

    The stickiest point for Republicans is the PAYGO waiver provision, which essentially would mean that the COVID-19 relief bill spending would not count toward the deficit.

    Republicans balked at the size and cost of the most recent COVID-19 relief package and argued they were not given enough input over the bill's contents, and oppose the PAYGO waiver for that reason. The COVID-19 relief bill was passed through reconciliation, a process that lets Congress quickly pass legislation but is inherently partisan as it only requires 51 votes to pass the Senate and is immune to filibuster rules.

    "This could have all been avoided all together. We could have crafted a bipartisan package that did not trigger these automatic cuts," Rep. Buddy Carter (R-Ga.) on the House floor Friday.

    Democrats note that Republicans have waived PAYGO for their own priorities, including the 2017 tax reform bill, which was also done through reconciliation, to avoid cuts to Medicare and other programs. PAYGO was also waived for previous bipartisan COVID relief bills.

    "Because PAYGO requirements cannot be changed in reconciliation bills, we knew from the outset this additional legislative fix was needed to avert painful and indiscriminate cuts to Medicare, farm supports and other programs," Yarmuth said Friday on the House floor.

    The partisan fighting could delay any action on a PAYGO waiver, which would need to be dealt with by the end of the fiscal year to prevent cuts from taking effect.

    "My guess is right now, PAYGO falls to the wayside for the time being and Congress focuses on the 2% cut," said a hospital industry lobbyist.

    A Senate bill introduced by Sens. Jeanne Shaheen (D-N.H.) and Susan Collins (R-Maine) would only deal with the 2% Medicare cuts, pausing them through the public health emergency.

    It's not clear if that bill will get a vote in the Senate either. A spokesperson for Senate Majority Leader Chuck Schumer (D-N.Y.) didn't respond for comment, but pausing the 2% sequester cuts during the pandemic has had bipartisan support.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    older people - Medicare - insurance
    Medicare Advantage marketing was different in 2023. That's no accident.
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Daily Dose Newsletter: Sign up to receive a late afternoon weekday roundup of that day’s breaking news and developments in healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing