CMS Planning 11.1% Medicare Payment Cut, Effective Oct. 1

Amid reports that providers have been overpaid to the tune of $2 billion above federal projections since late last year, CMS has announced that it plans to trim Medicare payments by 11.1 percent starting October 1.

CMS Administrator Donald Berwick was quoted as saying the adjustment is necessary in order for the agency to pay skilled care operators properly in the coming fiscal year. However, industry groups, including LeadingAge and the American Health Care Association, are accusing the agency of making cuts beyond what is necessary for budget neutrality.

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