2% Medicare Cuts, Part of Sequestration, Began on April 1

The 2 percent cut to Medicare payments that are part of sequestration took effect on Monday.

As a result of the cut, providers will be reimbursed 98 cents on the dollar for Medicare fee-for-service claims with dates of services or dates of discharge on or after April 1, 2013. The payment adjustment will be applied to all claims after determining coinsurance, any applicable deductible and any applicable Medicare Secondary Payment adjustments.

The impact will begin to be evident in mid-April. The payment reductions are on track to cost skilled nursing facilities about $782.5 million in fiscal year 2014.