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Medicare payment cuts begin April 1

 
All Medicare Fee-for-Service claims with dates of service or dates of discharge on or after April 1 will incur a 2 percent reduction in Medicare payment as a result of the Budget Control Act (BCA) of 2011’s budget sequestration, according to the Centers for Medicare & Medicaid Services (CMS). The payment adjustment will be applied to all Part A and Part B claims after determining coinsurance, any applicable deductible and any Medicare Secondary Payment adjustments, CMS stated in this announcement late last week.

The sequestration, which requires across-the-board federal budget cuts, was included in the BCA as part of a deal to raise the nation’s debt ceiling. This year, about $9.9 billion will be cut from Medicare – about 12 percent of the $85.4 billion in required cuts to the federal budget. In addition to the 2 percent payment reduction, Medicare funding for graduate medical education will be reduced by 2 percent. Research and public health programs of the National Institutes of Health, Centers for Disease Control and Prevention, and Substance Abuse and Mental Health Services Administration also will be affected.

The Wisconsin Medical Society continues to work with the state’s Congressional delegation to reform the Medicare program by eliminating the sustainable growth rate (SGR) formula and implementing new models of care delivery and payment.

Back to March 14, 2013 Medigram