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San Francisco Marin Medical Society Blog


Sequestration Means 2% Medicare Cut to Health Care Providers Effective 4/1

Across-the-board federal budget cuts were triggered on March 1 because Congress failed to come to an agreement on how to reduce the federal deficit. Although it is still possible that Congress will reach some sort of a compromise before most of the cuts take effect on April 1, physicians should prepare for a 2% reduction in reimbursement from the Medicare program beginning in April.

California Heavily Affected by Looming Sequester Cuts

The White House detailed how California and other states would be affected if a deal is not reached by March 1, 2013 to avoid automatic cuts under sequestration. The automatic cuts involve nearly $1 trillion in across-the-board reductions over a decade, including a 2% reduction to Medicare reimbursement rates.