Medicare Compliance & Reimbursement

Industry Note:

What Ever Happened to 'Sequestration' Cuts?

Do you remember back in 2013 when the Centers for Medicare & Medicaid Services (CMS) instituted “sequestration cuts,” which slashed Medicare pay by two percent? If you’re wondering what happened to that, the answer may be a little bit frustrating — because the cuts are still in place.

CMS reminded practices of this fact in its March 3 MLN Connects Provider e-News bulletin, which noted that the two percent payment reduction will stay in place for the foreseeable future.

“The claims payment adjustment will continue to be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare Secondary Payment adjustments,” CMS said in the notification. “Though beneficiary payments for deductibles and coinsurance are not subject to the two percent payment reduction, Medicare’s payment to beneficiaries for unassigned claims is subject to the two percent reduction.”

Keep an eye on these pages for updates if CMS decides to rescind or change the sequestration cuts in the future.

To read more from the MLN Matters update, visit www.cms.gov/Outreach-and-Education/Outreach/FFSProvPartProg/Provider-Partnership-Email-Archive-Items/2016-03-03-Enews.html#_Toc444672557.