Medicare Pay Cut Implementation Starting April 1

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The US Congress was unable to reach a deal to avoid across-the board federal spending cuts, also known as “Sequestration”. The Centers for Medicare & Medicaid Services (CMS) will not be implementing these spending cuts until April 1, even though sequestration became effective on March 1.

A CMS spokesperson told Medscape Medical News, “In order to implement the sequester for Medicare Parts A and B by April, CMS needs to provide 1 to 2 weeks’ advance notice to the claims administration contractors to give them enough time to adjust their payment systems.” 

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