Sequestration Healthcare

Sequestration is a budget technique characterized by the implementation of automatic mandatory spending cuts if deficit levels exceed a certain threshold. The Budget Control Act of 2011 utilized sequestration to... more +
Sequestration is a budget technique characterized by the implementation of automatic mandatory spending cuts if deficit levels exceed a certain threshold. The Budget Control Act of 2011 utilized sequestration to encourage Congress to cut federal spending by 1.2 billion dollars. If Congress fails to make the specified funding cuts, sequestration will kick in and  automatic cuts will be made to the federal budget. A good portion of the slated cuts will come from the national security budget.  less -
News & Analysis as of

President Obama Releases 2016 Budget Proposal Ending Sequester Cuts

On February 2, 2015, President Barack Obama delivered his Fiscal Year 2016 budget proposal to Congress. The $4.066 trillion budget contains a sequestration replacement plan that would allow a 7%, or $75 billion, increase in...more

Hospitals Speak Out Against Sequestration Extension

On Wednesday, February 12, 2014, the U.S. Senate passed legislation that, among other things, would further extend Medicare sequestration by one year (until 2024) in part to avoid a reduction in military pensions. Earlier in...more

CMS to Congress: Sequestration of Cancer Drug Reimbursement to Continue

A June 3, 2013 letter from CMS Administrator Marilyn Tavenner to Rep. Pete Sessions (R-Tex.) states that the agency does not believe it has any discretion under the Budget Control Act of 2011 to exempt Part B cancer drug...more

Sequester the Sequestration Cuts, Please! Why the Health Care Industry Must Brace Itself for More Change...

As the federal government scrambles to cut burgeoning health care costs, yet increase health care coverage to the uninsured or underinsured, the paradox of expansion, on the one hand, yet constriction, on the other, has...more

CMS Releases Sequestration Details; Medicare EHR Incentive Payments Subject to Two-Percent Reduction

On March 8, 2013, CMS announced that it will apply the two-percent sequestration reduction to all Medicare provider payments with dates of service/discharge on or after April 1, 2013. The announcement also states that claims...more

Medicare and Sequestration – What Happens Now?

Due to continuing budget gridlock in Washington, sequestration has been triggered – meaning automatic cuts to a wide range of federal programs, including Medicare payments to providers and health plans. While the Centers for...more

President Obama Issues Sequestration Order, CMS Has Yet to Publish Implementation Instructions

On March 1, 2013, President Obama issued a sequestration order directing the Office of Management and Budget (OMB) to administer across-the-board cuts to federal spending. Concurrently, OMB issued a report to Congress...more

Health Care Reform Update -- February 11, 2013

In This Issue: Leading the News; Implementation of the Affordable Care Act; Other HHS and Federal Regulatory Initiatives; Other Congressional and State Initiatives; Other Health Care News; and Hearing and Mark-Ups...more

Election Behind Us: Looking Ahead to the Fiscal Cliff and 2013

The balance of power in Washington remains intact: control of The White House and Congress remains as it was prior to the election. Notwithstanding that balance of power, we are NOT in a status quo political environment....more

Congressional Research Service Finds Sequestration Would Have “Somewhat Limited” Effect on Health Reform Spending

An October 1, 2012 report from the Congressional Research Service (CRS) analyzes the impact of impending across-the-board cuts to Federal spending known as “sequestration” on implementation of the Affordable Care Act (ACA). ...more

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