As most of you know, Medicare implemented a 2% reduction to all provider payments as of April 1, 2013. Currently this cut is in full effect across the board to all Medicare certified healthcare providers. What this means to your facility is that any services that are billed to Medicare on or after April 1, 2013 will be subject to the 2% reduction in your Medicare payment. The reduction does not come off the “allowable charges” but does come off the total payment for each remittance advice. This reduction effects Medicare and all Medicare replacement plans alike.
The sequestration was signed into law in 2011 to help achieve the 1.2 trillion dollar federal spending cut over the course of 9 years. Many different branches of government are also experiencing the same type of cut to their services and payments to help ensure this goal is met by 2022.
HHS Solutions Billing Manager