On May 22nd, the House of Representatives narrowly passed a massive tax and spending bill by a vote of 215-214. The bill now advances to the Senate for a vote, where it requires only a simple majority to pass through the reconciliation process. 

This legislation increases the overall deficit by over $2 trillion. This will trigger the Pay-As-You-Go (PAYGO) Act, which automatically reduces federal spending when Congress passes legislation that adds to the deficit. Medicare sequestration from PAYGO would be capped at a 4% cut if this passes the Senate and is signed into law. 

In other pieces of legislation that have increased the deficit, Congress has elected to “waive” PAYGO. However, if they do not, the Congressional Budget Office estimates a resulting $500 billion+ in Medicare cuts over the next 10 years. 

Please utilize this tool to remind your legislators of the role that Medicare fills within your RHCs. Importantly, PAYGO will cause a drastic decrease in Medicare payments that could impact your facilities' continued ability to provide care.