To prevent across-the-board direct spending cuts, and for other purposes.

This bill makes several budgetary and technical changes to provisions under Medicare and Medicaid.

The bill continues to exempt Medicare from sequestration until December 31, 2021. (Sequestration is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.)

The bill also specifically

• applies certain modified payment limits to rural health clinics that temporarily enrolled in Medicare during the public health emergency relating to COVID-19 (i.e., coronavirus disease 2019) or that applied to enroll by December 31, 2020; and
• preserves higher Medicaid disproportionate-share hospital payments for public hospitals in California under forthcoming payment methodology changes.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov