While health care providers will be penalized under the sequester, if the approach going forward in lieu of the sequester is to provide for alternate cuts in government spending, the result as shown in the linked article to the providers could be much worse.

The one thing that seems to be clear is that the current administration, while willing to entertain reductions in the reimbursement to the providers, is not willing to alter the benefits, raise the cost to the beneficiaries or change the Medicare entitlement age.