Sequester Medicare cuts go into effect

A 2% reduction in reimbursement for Medicare's fee-for-service program went into effect on April 1, according to the U.S. Centers for Medicare and Medicaid Services (CMS).

The payment reduction is the result of the sequestration order mandated by the Budget Control Act of 2011, which requires across-the-board reductions in federal spending. The claims payment adjustment will be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare secondary payment adjustments, according to CMS.

The payment cut will affect hospitals, home health services, durable medical equipment suppliers, physician services, and all others who provide services to Medicare patients, CMS said.