Under the Budget Control Act of 2011, if the Joint Select Committee on Deficit Reduction is unable to come up with the required level of budget cuts, or Congress fails to approve the recommendations of the committee, the Medicare program would be subject to a sequester of up to 2 percent— that…
Medicare Sequestration Payment Reductions
The Budget Control Act of 2011 requires, among other things, mandatory across-the-board reductions in certain types of federal spending, also known as sequestration. Medicare claims with dates-of-service or dates-of-discharge on or after April 1, 2013, incur a 2% reduction in Medicare payment. These are known as Medicare Sequestration Payment Reductions. The page collects American Hospital Association content on this topic.