The Centers for Medicare & Medicaid Services (CMS) has announced there will be a 2 percent reduction in Medicare payments effective April 1, 2013, as part of the mandatory reductions in federal spending, known as sequestration, required by the Budget Control Act of 2011.
Medicare fee for service (FFS) claims for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS), including claims under the durable medical equipment (DME) Competitive Bidding Program, will incur a 2 percent reduction in Medicare payment based upon whether the date of service, or the start date for rental equipment or multi-day supplies, is on or after April 1, 2013. The claims payment adjustment will be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare Secondary Payment adjustments. Though beneficiary payments for deductibles and coinsurance are not subject to the 2 percent payment reduction, Medicare’s payment to beneficiaries for unassigned claims is subject to the 2 percent reduction.
