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Linda Collins Blogger

2% Less

Posted by Linda Collins | April 01, 2013

Effective Monday, April 1, 2013 there will be a 2% payment reduction for all Medicare claims. The payment reduction is required under sequestration and applies to all claims filed on or after April 1, 2013.

Importantly, the Medicare fee schedule remains unchanged. CMS will simply reduce the final payment by 2%.
Example: A provider bills Medicare for $100. Medicare normally would pay 80% of the approved amount ($80).The patient is responsible for the remaining 20% ($20). But due to the mandated sequestration cut, Medicare deducts 2% from the $80, or $1.60. So instead of getting paid $80, the supplier receives $78.40. 


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