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Centers for Medicare & Medicaid Services (CMS) Sequestration

King & Spalding

Suspension of the 2% Sequestration Reduction May Affect Commercial Payer Reimbursement

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Section 4408 of the CARES Act suspends the 2% sequestration reduction to payments under the Medicare program that have been in place since April 1, 2013. The suspension of sequestration in Medicare will run from May 1, 2020...more

King & Spalding

Budget Deal to Limit Provider-Based Status, Extend Sequestration

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On October 28 and 30, 2015, the U.S. House of Representatives and U.S. Senate approved the Bipartisan Budget Act of 2015 (the Act)—a measure designed to raise the limit on Federal borrowing that would also have significant...more

McDermott Will & Emery

Congress Take Step Toward Site-Neutral Medicare Payments in Bipartisan Budget Act of 2015

McDermott Will & Emery on

On October 28, 2015, the U.S. House of Representatives approved legislation that, if enacted, would, among other things, substantially alter how and how much Medicare pays for outpatient services furnished by hospitals. The...more

K&L Gates LLP

Pennsylvania Hospitals Successfully Challenge Sequestration Reductions

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In a case of first impression, a Pennsylvania court recently ruled in favor of 12 independent community hospitals (the “Hospitals”) that sued health insurer Highmark Inc. (“Highmark”) for passing on its 2 percent Medicare...more

Foley & Lardner LLP

Insurer Wrongfully Passed Sequestration Cuts Through to Providers

Foley & Lardner LLP on

A Pennsylvania judge found, on May 6, 2015, that a Medicare Advantage Plan had no right under its participation agreements to pass CMS sequestration reductions through to participating providers. Judge R. Stanton Wettick Jr....more

King & Spalding

CMS Further Clarifies that Contract Language Determines Whether Sequestration Adjustments Apply to Part C Provider Payments

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In an April 17, 2014 letter to the American Hospital Association, CMS Administrator Marilyn Tavenner stated that whether “sequestration might affect a [Medicare Advantage plan’s] payments to its contracted providers [is]...more

McDermott Will & Emery

Lawmakers Reach Deal to End Government Shutdown, Raise Debt Ceiling

McDermott Will & Emery on

While the focus over the past 16 days has been on the shuttered government and the prospect of the United States defaulting on its debt obligations, there are subtexts that are relevant to the health care industry. This On...more

King & Spalding

CMS to Congress: Sequestration of Cancer Drug Reimbursement to Continue

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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

Polsinelli

Revisit Surveys To Slow Down Due To Budget Sequestration

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As of April 5, 2013 and in response to budget sequestration, the Centers for Medicare & Medicaid Services (CMS) warns that revisit surveys for skilled nursing facilities will be delayed and approval requirements for...more

King & Spalding

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

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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

King & Spalding

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

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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

King & Spalding

Important Medicare Provisions Contained in Fiscal Cliff Compromise

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On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (ATRA), to avert the so-called fiscal cliff. While most popular coverage has focused on ATRA’s changes to the tax code, the new law...more

King & Spalding

House Budget Committee's Democrats Publish FAQs on Sequestration

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Democratic members of the U.S. House Budget Committee have released a brief Frequently Asked Questions primer on the budget sequestration set to take effect on January 2, 2013. ...more

King & Spalding

OMB Issues Report on Likely Effects of Sequestration

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The Office of Management and Budget (OMB) issued a report on September 14, 2012 detailing the magnitude of impending across-the-board cuts to Federal spending beginning on January 2, 2013 in a process known as...more

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