« | Home | »

The Fiscal Cliff May Trigger Medicare Cuts

By jeremyc | December 30, 2012

The fiscal cliff is looming ahead, but the Congress and White House are still locked in a stalemate over striking a deal to solve the problem. As a result, doctors and medical professionals are bracing for a 28.5 percent Medicare payment cut that will automatically take effect on January 1, 2013. This includes a 26.5 percent cut as per the sustainable growth rate reimbursement formula of Medicare and a 2 percent cut as per the Budget Control Act, the legislation that is responsible for setting up the fiscal cliff in the first place through tax increases and spending cuts.

The Centers for Medicare and Medicaid Services (CMS) has already issued a notice on its official website stating that it is planning to take steps for implementing the cuts already after seeing the lack of progress in legislations. The agency will pay claims for services that are rendered up until December 31, 2012 as per the current rates, and it has already sent reminders to doctors about the payment schedule. Claims sent electronically will be paid in 14 days after submission and claims sent through paper will take 29 days.

The notice regarding the plan for action based on the upcoming cuts also stated, “CMS will notify you on or before January 11, 2013, with more information about the status of Congressional action to avert the negative update and next steps.”

Topics: | Medicare Prescription Drug Plan | No Comments »

Comments are closed.