Exempt Medicare from any sequestration under Statutory PAYGO that is caused by the One Big Beautiful Bill Act.

Summary

Blocks automatic PAYGO sequestration cuts from applying to Medicare (all programs under Title XVIII of the Social Security Act) when the sequestration order is issued on or after this law’s enactment and is caused, in whole or in part, by the budget effects of the July 4, 2025 statute commonly called the "One Big Beautiful Bill Act." This means Medicare payments and benefits will not be reduced by those specific PAYGO-triggered sequestration orders. The change is narrowly targeted: it exempts Medicare from a particular kind of across-the-board cut tied to that prior law. It does not change Medicare benefit rules or create new Medicare spending; it only prevents a PAYGO sequestration adjustment from being applied to Title XVIII programs in the described circumstance.

• Exempts all Medicare programs (Title XVIII) from PAYGO sequestration orders triggered by budget effects of the July 4, 2025 statute.
• Applies only to sequestration orders issued on or after the Act's date of enactment and only if attributable in whole or part to that prior statute.
• Prevents automatic percentage reductions to Medicare payments that would result from the specified PAYGO trigger.
• Does not change Medicare eligibility, benefits, or statutory payment formulas.
• Shifts the PAYGO offset obligation away from Medicare, potentially increasing pressure on other programs or requiring alternative offsets.
• Targets only the PAYGO enforcement mechanism—not broader budget or health policy.
• Administrative implementation will require OMB/Treasury/CMS to exclude Title XVIII from relevant sequestration actions under the specified conditions.
• Narrow, single-issue provision with no additional sections or funding directives.