Sequestration Medicare Cuts - Helpful Links on Healthcare Reform

Sequestration and Healthcare Reform

Medicare Cuts

The sequestration provision called for by the Budget Control Act's (BCA's) took effect on April 1st. Unfortunately, the medical industry as a whole has been affected tremendously. Our providers are now being paid 2% less of Medicare payments. Therefore, the cut is applied only to the 80% percent of the allowed charge a participating provider received directly from Medicare. According to a document issued by the AMA, copayments and deductibles will not change and are subject to the full allowed amounts.

Sequestration and the Medicare and Medicaid EHR Incentive Programs

Incentive payments made through the Medicare Electronic Health Records (EHR) Incentive Program are subject to the mandatory reductions in federal spending known as sequestration, required by the Budget Control Act of 2011. 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. Under these mandatory reductions, Medicare EHR incentive payments made to eligible professionals and eligible hospitals will be reduced by 2%. This 2% reduction will be applied to any Medicare EHR incentive payment for a reporting period that ends on or after April 1, 2013. If the final day of the reporting period occurs before April 1, 2013, those incentive payments will not be subject to the reduction.
Please note that this reduction does not apply to Medicaid EHR incentive payments, which are exempt from the mandatory reductions. Read more on the CMS Website

Healthcare Reform Law

Due to the high costs of healthcare, uninsured Americans and the loopholes in benefit coverage (such as individuals being turned down for coverage when they have an existing illness) the government has created the Healthcare Reform Law. Although, we have already realized some of the changes taking place, at the beginning of 2014 major changes are on their way. Here at MBSS we are keeping track of the changes and will continue to provide additional resources and training as it becomes available. Below is a great, easy to understand, timeline for your review.

Health Reform Source - Implementation Timeline