Multiple Medicare Administrative Contractors overseeing Part A and Home Health and Hospice Medicare payments have reported the 2% sequestration deduction has been applied twice on recently processed claims, beginning in mid-April. This is specific to Part A institutional providers including skilled nursing, home health and hospice claims (the dollar deducted for sequestration is shown in value code 73).

Home Health and Hospice MAC’s CSG, Wellpoint Federal (formally NGS), and Palmetto, have each included an issue of log item on their websites for more information. The MACs state no further provider action is needed.

The Fiscal Intermediary Standard System (FISS) maintainer is identifying claims underpaid incorrectly due to this issue. Identified/impacted claims will be adjusted starting on May 14, 2026. Members are advised to review their claims from the last month and ensure proper payments are reprocessed.