CMS Expects The 2% Sequestration Cut To Reduce Medicare Payments By $11 Billion Annually

The federal Centers for Medicare and Medicaid Services (CMS) projects that the two-percent reimbursement cut to Medicare provider organizations due to sequestration will reduce Medicare spending by $11 billion annually. The cut of two percent went into effect for all payments made after April 1, 2013, which immediately affected Medicare Advantage plans and Medicare Prescription Drug (Part D) plans because their monthly capitation payment is paid on the first business day of each month. Reimbursements to Medicare fee-for-service provider organizations that submit claims to fee-for-service Medicare for services provided or dates of discharge on or . . .