On March 8, 2013, the Centers for Medicare and Medicaid Services (CMS) issued a message to health care providers and suppliers regarding payment reductions in the Medicare fee-for-service (FFS) program as a result of sequestration cuts.  CMS’s message noted that the Medicare FFS Program (Part A and Part B) will see a mandatory reduction in Medicare payments as a result of the sequestration order signed into law on March 1, 2013. 

Medicare FFS claims with dates-of-service and dates-of-discharge on or after April 1, 2013 will incur a 2% reduction in reimbursement.  Claims for DME, prosthetics, orthotics, and supplies will also be reduced by 2% for dates-of-service and start dates on or after April 1, 2013. 

CMS will apply the 2% payment adjustment after determining applicable coinsurance, deductible, and relevant Medicare Secondary Payment adjustments.  However, beneficiary payments for unassigned claims are also subject to the 2% reduction.

The message is in resonse to a March 1 report issued by the Office of Management and Budget detailing the sequestration cuts.

von Briesen attorneys will continue to monitor changes to Medicare FFS reimbursement as negotiations continue regarding the federal budget and related legislation.