This Week – March 9, 2013
This Week in Washington DC:
- CMS Releases Guidance on Sequestration and Medicare Reimbursement
All Medicare Providers Scheduled to Receive 2% Cut Beginning April 1st
On Friday, March 8, 2013 the Centers for Medicare and Medicaid Services (CMS) announced that beginning April 1, 2013, all Medicare providers (including hospitals, ambulatory surgical centers, physicians, etc.) will receive a 2% cut on Medicare services (physician fee schedule and facility fees) due to sequestration. CMS released the following bulletin:
To All Health Care Professionals, Providers, and Suppliers
Mandatory Payment Reductions in the Medicare Fee-for-Service (FFS) Program – “Sequestration”
The Budget Control Act of 2011 requires, among other things, mandatory across-the-board reductions in Federal spending, also known as sequestration. The American Taxpayer Relief Act of 2012 postponed sequestration for 2 months. As required by law, President Obama issued a sequestration order on March 1, 2013. The Administration continues to urge Congress to take prompt action to address the current budget uncertainty and the economic hardships imposed by sequestration.
This listserv message is directed at the Medicare FFS program (i.e., Part A and Part B). In general, Medicare FFS claims with dates-of-service or dates-of-discharge on or after April 1, 2013, will incur a 2 percent reduction in Medicare payment. 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 upon whether the date-of-service, or the start date for rental equipment or multi-day supplies, is on or after April 1, 2013.
The claims payment adjustment shall be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare Secondary Payment adjustments.
Though 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 2 percent reduction. The Centers for Medicare & Medicaid Services encourages Medicare physicians, practitioners, and suppliers who bill claims on an unassigned basis to discuss with beneficiaries the impact of sequestration on Medicare’s reimbursement.
Questions about reimbursement should be directed to your Medicare claims administration contractor. As indicated above, we are hopeful that Congress will take action to eliminate the mandatory payment reductions.
ACG will continue to update membership on the effects of sequestration and Medicare reimbursement.
ACG will also continue to be the voice for clinical gastroenterology in Washington D.C. and oppose any further cuts in Medicare reimbursement.
Please stay tuned for further updates. Please also share and discuss your thoughts with fellow ACG members on the ACG GI Circle. To login and share your comments, go to gi.org and sign in as a member. Once you have done so, click here and then click the orange "Visit ACG GI Circle" button to be taken to the GI Circle site. If you have not yet activated your ACG GI Circle account, please email us at email@example.com.
Contact Brad Conway, VP Public Policy, with any questions or for more information.