Medicare FFS Cut by 2 Percent

You may have been under the impression that the sequester cuts were aimed solely at defense and discretionary spending and that entitlements such as Social Security and Medicare would be unaffected. CMS recently issued this notice that Medicare will cut two percent from provider payments in its fee-for-service (traditional Medicare) program starting April 1 –

This listserv message is directed at the Medicare FFS program (i.e. Part A and Part B). In general, Medicare FFS claims with dates-of-service or dates-of-discharge on or after April 1, 2013, will incur a 2 percent reduction in Medicare payment. Claims for durable medical equipment (DME), prosthetics, orthotics, and supplies, including claims under the DME Competitive Bidding Program, will be reduced by 2 percent based upon whether the date-of-service, or the start date for rental equipment or multi-day supplies, is on or after April 1, 2013.

HT: Donna Kinney.

Comments (11)

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  1. Ken says:

    You mean they have been lying to us?

  2. H. James Prince says:

    Government Logic: when there is a shortage of Doctors, we should pay them less money.

  3. Buster says:

    I’m surprised the cuts aren’t larger — it’s probably only because Congress cannot arbitrarily make larger cuts than what the sequestration dictates. In other areas of government spending, Democrats tried to make the cuts as painful as possible. For instance, the FAA announced a shortage of funds would limit the number of landing at major airports. Surely there are other areas where budgetary fat could be cut without affecting something as vital as air travel. But cutting budgetary fat wouldn’t emphasize how indispensible federal spending as much as cutting funds in the place that hurts the most.

  4. Jack says:

    Well there’s definitely enough ‘budgetary’ fat on most Americans. Groups with the most political clout will lobby until they get things changed. Austerity measures may have worked in Latvia, but doubtful they’ll work here.

  5. Jordan says:

    You would think that the market for DMEPOS would just adjust. If a manufacturer couldn’t skim 2% to get the contract, then they just drop out.

  6. Patel says:

    Well considering that Entitlement programs are the biggest consumer of the public budget, this is a welcoming angle.

  7. Desai says:

    I think it is fair to say that perhaps we should make larger cuts into the welfare program. After all, welfare and entitlement programs are what is consuming and bankrupting most states.

  8. Billy Scar says:


    With that approach, knowing you are hurting a vital part of the medical system, you are only headed for disaster.

  9. Jean Lander says:

    There is something shady about this sequester…I wonder what it is…

  10. Barbara Wonf says:

    I feel like every time a new regulation is passed we should all remain alert to anything that happens in the following few weeks. There’s a tendency to never reveal everything about these laws when they are proposed or passed, but instead take their sweet time to make it clear for everyone what these are really all about. It’s very aggravating to be part of such a corrupt system where you never really know whether you have been told some nonsense or the actual truth.

  11. James says:

    God help us in this rollercoaster of policies.