Schneider’s Bipartisan Legislation to Prevent Cuts to Hospital Payments During COVID Passes House

March 19, 2021
Press Release
A Delay to the “Medicare Sequester” Would Ensure Providers Stay Focused on Fighting COVID-19

WASHINGTON— Friday, Congressman Brad Schneider (IL-10)’s Medicare Sequester COVID Moratorium Act was included in H.R. 1868 as it passed the House.  The bipartisan legislation will prevent cuts to hospital payments through the end of 2021.


“The uncertainty in COVID-19 cases across the country means continued stress on our frontline health providers. Our hospitals are reporting unprecedented challenges. Our health care professionals report growing burnout and hospitals are experiencing decreased revenue as more are forced to stop elective procedures. Now is not the time to reinstitute across the board cuts to our providers. We must stand by our frontline workers, and I’m proud that this delay to the Medicare sequester will support them in their mission to care for America,” said Congressman Brad Schneider.


H.R. 315, the Medicare Sequester COVID Moratorium Act would delay the Medicare sequester through the duration of the public health emergency, ensuring that providers can stay focused on treating and eradicating COVID-19 instead of worrying about their bottom line. Since 2011, Medicare payments have been subject to a 2% reduction, known as the Medicare sequester. However, recognizing our providers’ heroic work and dire circumstances, Congress delayed the Medicare sequester through April 1, 2021, as part of the Consolidated Appropriations Act, 2021. Unfortunately, the pandemic has not waned, and our providers now again face revenue cuts when hospital operating margins are down an estimated 18.7%, according to the American Hospital Association. Our providers need the reassurance that they will face not unnecessary cuts until the pandemic has completely subsided.