The defining feature of scalar sequestering is that the MSSM squark and
slepton masses as well as all entries of the scalar Higgs mass matrix vanish at
some high scale. This ultraviolet boundary condition - scalar masses vanish
while gaugino and Higgsino masses are unsuppressed - is independent of the
supersymmetry breaking mediation mechanism. It is the result of renormalization
group scaling from approximately conformal strong dynamics in the hidden
sector. We review the mechanism of scalar sequestering and prove that the same
dynamics which suppresses scalar soft masses and the B_mu term also drives the
Higgs soft masses to -|mu|^2. Thus the supersymmetric contribution to the Higgs
mass matrix from the mu-term is exactly canceled by the soft masses. Scalar
sequestering has two tell-tale predictions for the superpartner spectrum in
addition to the usual gaugino mediation predictions: Higgsinos are much heavier
(mu > TeV) than scalar Higgses (m_A ~ few hundred GeV), and third generation
scalar masses are enhanced because of new positive contributions from Higgs
loops.Comment: 16 pages and 3 figure