MAR 11, 2016
2 Percent Sequestration Continues Until Further Notice
The Centers for Medicare and Medicaid Services has announced that 2 percent sequestration cuts on Medicare Part B claims will continue until further notice. These cuts began April 1, 2013, as part of across-the-board cuts in federal agency spending caused by the sequestration process. The 2 percent cut also applies to costs for drugs administered by the physician.
For physicians who participate with Medicare Part B, the sequestration cut affects 80 percent of the allowable; beneficiary copayments and deductibles do not change. The cuts do not affect non-participating physicians' billing; CMS applies the 2 percent to the payment made to the patient.
Contact your Medicare Administrative Contractor with any questions about claims submission or payment.