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Sequestration Hospitals

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 -
K&L Gates LLP

COVID-19: Impact on Hospitals of the Temporary Elimination of the 2% Medicare Sequestration Cuts

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Certain provisions of the recent CARES Act impact how hospitals are reimbursed under original Fee-For-Service Medicare (i.e., Part A and Part B) and existing Medicare Advantage contracts. Specifically, the CARES Act...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

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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

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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

Pennsylvania Hospitals Challenge Medicare Advantage Plan’s Sequestration Adjustment

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On September 22, 2014, twelve hospitals filed a complaint in a Pennsylvania state court against a Medicare Advantage plan, Highmark, Inc., along with its HMO subsidiary, for implementing a two-percent reduction to the...more

King & Spalding

Hospitals Speak Out Against Sequestration Extension

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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

King & Spalding

Medicare Providers React To New Congressional Budget Deal

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A recent Congressional budget deal, the Bipartisan Budget Act of 2013, would exclude hospitals from sequester relief. Medicare provider payment cuts would be extended through 2023, two years longer than the cuts set by the...more

King & Spalding

Washington Insight - June 2013

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In This Issue: - King & Spalding Partners Address Political Intelligence Industry - On the Politics of Immigration Reform - Appropriations and Sequester – Laying Down Markers - The Congressional Appropriations...more

Polsinelli

Health Reform + Related Health Policy News Update - January 24, 2013

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In This Issue: - OMB Directs Department Heads to Prepare for Sequestration - HHS Finalizes Omnibus HIPAA Rule, Enhances Privacy Requirements - SCOTUS Says Equitable Tolling Not a Factor in DSH Case - Report...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

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