A 2 percent sequestration cut in Medicare provider payments took effect this week as required by the Budget Control Act of 2011. The Centers for Medicare & Medicaid Services (CMS) released a message on March 8 regarding Medicare claims and the sequestration payment cuts. In this announcement, CMS instructs Medicare claims administration contractors to answer questions regarding how reimbursement will be affected by sequestration.
Many contractors have released FAQs that discuss how payments will be calculated on claims, and how the 2 percent reduction under sequestration can be identified on a remittance advice. One example of those FAQs is available here. If you have further questions about these payment reductions, we recommend that you visit your respective contractor’s website for the most accurate information for your region.
Sequestration cuts will remain in place unless Congress is able to pass legislation replacing the cuts as part of a larger deficit reduction agreement. We urge MGMA members and their practices’ physicians and staff to access the MGMA Advocacy Center to contact their members of Congress and tell them to stop these cuts.