CMS Notice on Sequestration Cuts

CMS' Notice on Medicare Payment Reduction due to Sequestration

The Budget Control Act of 2011 included a threat of harmful across-the-board cuts as a mechanism to force the U.S. Congress to act on further deficit reduction. The cuts were slated to go into effect on January 1, 2013. However, The American Taxpayer Relief Act of 2012 postponed sequestration for 2 months.

Due to the failure to compromise and as required by law, President Obama issued a sequestration order on March 1, 2013. The Centers for Medicare and Medicare Services sent a communication to healthcare providers on March 8 announcing that Medicare FFS claims with dates-of-service or dates-of-discharge on or after April 1, 2013 will incur a two percent reduction in Medicare payment.

View CMS' communication on sequestration cuts 496.14 kB