Three major hospital groups are urging Congress to suspend an upcoming 2 percent Medicare payment cut mandated under federal sequestration, "for at least the duration of the pandemic."
The federal sequester, created in 2011 by the Budget Control Act, is intended to cut federal spending by more than a trillion dollars by fiscal year 2021. The cuts target all industries, but Medicare spending specifically is subject to sequestration of 2 percent annually.
The American Hospital Association, the Federation of American Hospitals and the Association of American Medical Colleges penned the letter, arguing suspending the payment cut will provide the flexibility hospitals need to respond to the COVID-19 pandemic.
"[Suspending the sequester] alone will provide immediate, significant relief across the board and will signal continued congressional support for the hard work that lies ahead for all of us," the letter reads.
The letter comes after MedPAC found last week that Medicare payments to hospitals fall below the cost of care.