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.
The AHA is deeply disappointed that the agreement extends the sequester on "mandatory" programs that includes Medicare provider payment cuts for an additional two years beyond their current expiration date in 2022 and 2023.
The American Hospital Association (AHA), the American Medical Association (AMA) and the American Nurses Association (ANA) today released a new report that found up to 766,000 health care and related jobs could be lost by 2021 as a result of the 2 percent sequester of Medicare spending mandated by…
Sequestration means that arbitrary reductions in resources for patient care under Medicare will now be set to take effect under the law for the remainder of the decade.
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…