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117-s-610117th CongressWALLET

Protecting Medicare and American Farmers from Sequester Cuts Act

Sponsored By: Senator Kaine, Tim [D-VA]

Became Law

Summary

Delays and softens scheduled Medicare payment cuts to keep provider payments steadier. It also extends emergency payment boosts for clinicians, slows private-payor lab rate cuts, postpones a payment reform model, and narrows a fast-track debt‑limit process for Congress.

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  • Clinicians: Retains the roughly 3.8 percent payment boost for services in 2021 and 2022 and adds a new 3.0 percent adjustment for services in 2022. It also extends data and rate adjustments into 2023 to smooth payment changes.
  • Medicare beneficiaries and providers: Short-term Medicare sequestration reductions are scaled to 1.0 percent from April 1 to June 30, 2022 and set a two-phase FY2030 cut of 2.3 percent then 3.0 percent, preserving more payment in the near term.
  • Clinical laboratories and private payors: Slows the phase-in of private‑payor rate reductions through 2025 and delays initial and follow-up reporting deadlines into late 2022 and early 2023 to ease the transition.
  • Budget process and Congress: Changes PAYGO scorecard timing for 2022–2023 and creates a narrow, expedited joint‑resolution path for raising the debt limit with a short listed window and a sunset.

*Extending payment boosts and postponing larger sequestration cuts is likely to raise near‑term federal outlays, shifting some budget effects into 2022–2023.*

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 4 benefits, 0 costs, 3 mixed.

Fast-track Senate vote on debt limit

The law sets fast Senate rules for one debt-limit increase resolution. It must be introduced by the Majority Leader by December 31, 2021. Debate is limited to 10 hours, with no amendments. The motion to proceed must be filed by January 15, 2022. These special rules end on January 16, 2022.

Medicare sequester paused, later higher cuts

The law pauses Medicare sequestration cuts through March 31, 2022. From April 1 to June 30, 2022, Medicare payments face a 1% cut. In fiscal year 2030, cuts are 2.25% for the first six months and 3.0% for the next six months. These rates apply to Medicare payments to providers.

Higher Medicare pay for clinicians 2021–2022

Medicare pays clinicians 3.75% more for services in 2021. It pays 3.0% more for services in 2022. These increases apply to Medicare Part B services.

Medicare Improvement Fund set at $101M

The Medicare Improvement Fund is set at $101 million for fiscal year 2021. This money supports improvements to the Medicare program.

Budget score moved from 2022 to 2023

For the PAYGO report after the first session of the 117th Congress, any 2022 budget debit is taken off the scorecards. The same amount is added to 2023 for sequestration checks. This changes when across-the-board cuts could be triggered.

Radiation oncology payment model delayed

Medicare delays the Radiation Oncology payment model to January 1, 2023. Providers start model payments and reporting then, not in 2022.

Slower phase-in for lab test rates

The law slows how Medicare lowers some lab test rates. The phase-in now runs through 2025. It also moves private payor data reporting to Dec 31, 2022, Jan 1, 2023, and Mar 31, 2023. Labs and insurers get more time before new rates apply.

Sponsors & CoSponsors

Sponsor

Kaine, Tim [D-VA]

VA • D

Cosponsors

  • Sen. Young, Todd [R-IN]

    IN • R

    Sponsored 3/4/2021

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 3/4/2021

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 3/4/2021

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 3/4/2021

  • Sen. Capito, Shelley Moore [R-WV]

    WV • R

    Sponsored 3/4/2021

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 3/4/2021

  • Sen. Collins, Susan M. [R-ME]

    ME • R

    Sponsored 3/4/2021

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 3/4/2021

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 3/4/2021

  • Sen. Rosen, Jacky [D-NV]

    NV • D

    Sponsored 3/4/2021

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 3/4/2021

  • Rep. Sinema, Kyrsten [D-AZ-9]

    AZ • D

    Sponsored 3/4/2021

  • Sen. Stabenow, Debbie [D-MI]

    MI • D

    Sponsored 3/4/2021

  • Sen. Tester, Jon [D-MT]

    MT • D

    Sponsored 3/4/2021

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 3/4/2021

  • Sen. Kelly, Mark [D-AZ]

    AZ • D

    Sponsored 3/4/2021

  • Sen. Peters, Gary C. [D-MI]

    MI • D

    Sponsored 3/4/2021

  • Sen. Murkowski, Lisa [R-AK]

    AK • R

    Sponsored 3/11/2021

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 3/18/2021

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 5/18/2021

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 5/18/2021

  • Sen. Marshall, Roger [R-KS]

    KS • R

    Sponsored 5/25/2021

  • Sen. Boozman, John [R-AR]

    AR • R

    Sponsored 5/25/2021

  • Sen. Brown, Sherrod [D-OH]

    OH • D

    Sponsored 5/26/2021

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 6/8/2021

  • Sen. Bennet, Michael F. [D-CO]

    CO • D

    Sponsored 6/15/2021

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 6/24/2021

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 7/20/2021

  • Sen. Wicker, Roger F. [R-MS]

    MS • R

    Sponsored 7/29/2021

Roll Call Votes

No roll call votes available for this bill.

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