The American Orthotic & Prosthetic Association (AOPA) was notified by its members that Noridian, the Jurisdiction A and D Durable Medical Equipment Medicare Administrative Contractor, was incorrectly applying the 2 percent sequestration reduction to claims with a date of service on and after January 1.
After AOPA’s inquiry, Noridian agreed that the reductions were in error. Noridian agreed to automatically adjust any affected claims.
The moratorium on the 2 percent sequestration reductions is in effect through March 31, and then a 1 percent sequestration will be applied to claims through June 30.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, suspended the payment adjustment applied to all Medicare fee-for-service claims from May through December 2020. The Consolidated Appropriations Act, 2021, signed into law on December 27, 2020, extended the suspension period through March.
