Unfortunately, it seems the sequestration’s impact will now be felt on healthcare providers. Beginning on April 1st, 2013 and for DOS on or after 4/1/2013 Medicare will be reimbursing at a 2 percent lower rate.
Approximately 90% of the Medicare program will be capped at a 2 percent reduction with the other 10% not experiencing a cut due to special exemptions.
Various state medicare entities are beginning to provide guidance regarding the specifics of the 2% payment adjustment with states such as Indiana, Illinois, and Iowa providing guidance.
It appears that all entities both provider and beneficiary will end up experiencing reduction through this sequestration initiative. The largest impact will be felt by those hospitals and practitioners that deal with large Medicare populations. Estimates from various entities including the governmental OMB, estimate sequestration cuts related to Medicare could reach approximately $11 Billion by the end of 2013.
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