The Sequestration’s Mandatory Medicare Payment Reduction is Here

Cutting MoneyDue to (insert your favorite villain here)’s failure to act, the sequester is now in effect. Medicare FFS payments for dates-of-service or dates-of-discharge on or after April 1st will now incur a 2 percent reduction in Medicare payments and reimbursements. Claims payment adjustments will be applied to all claims AFTER deducting amounts for coinsurance, deductibles, and any Medicare Secondary Payment adjustments.

If you are a physician, practioner or supplier and bill claims on an unassigned basis, you may want to inform your patients of this 2% Medicare payment reduction as it will be applied to them as well.

Durable Medical Equipment (DME), prosthetics, orthotics, and supplies, are subject to a 2% payment reduction as well for dates-of-service or start dates for rental  equipment or multi-day supplies on or after April 1st, 2013; this includes claims under the DME Competitive Bidding Program.



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