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Sequestration 2% Reduction in Medicare Payment



Sequestration

Medicare Payment reductions in Medicare Fee-For-Services.
 
For DOS or Date of discharge on or after April 1st 2013, your Physicians payment will be reduce by 2% reason code may be OA-121, Sequestration adjustments etc.,

Beginning this April 2013 there will be 2% reduction in doctor’s payment Stating Sequestration Its mandatory across the board reductions in federal spending. In general Medicare FFS claims with DOS or date of discharge on or after April 1, 2013, will incur 2% reduction in Medicare payment its includes DME services. Patient cost sharing remains same it means patient have to pay to 20% Co insurance 2% will be reduced only from the 80% of the allowed amount. See below explanation .

Medicare allows $100
Patient Share $20
Payment to Physicians $78.40
Sequestration $1.60

Interestingly not only Medicare even Medicare HMO may follow Medicare Sequestration adjustments.  

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