Sequestration Affects Medicare Fee-for-Service in April
March 12—Claims for Medicare’s fee-for-service program (Parts A and B) with dates of service or dates of discharge on or after April 1, 2013, will incur a 2 percent reduction in Medicare payment due to sequestration, the Centers of Medicare & Medicaid Services (CMS) announced via its Medical Learning Network e-mail listserv.
Claims for durable medical equipment (DME), prosthetics, orthotics, and supplies, including claims under the DME Competitive Bidding Program, will be reduced by 2 percent based on whether the date-of-service, or the start date for rental equipment or multiday supplies, is on or after April 1.
The claims payment adjustment will be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare Secondary Payment adjustments, CMS announced. Although beneficiary payments for deductibles and coinsurance are not subject to the 2 percent payment reduction, Medicare’s payment to beneficiaries for unassigned claims is subject to the reduction, CMS said.
Publication Date: Tuesday, March 12, 2013