Are payers taking advantage of Medicare’s 2% sequestration cut?

 

As you know, Medicare has imposted  the government's across the board 2% sequestration cut to your physician fee for service payments. Since many managed care payers pay physicians on a % of Medicare basis, it has come to my attention some payers are also including this 2% cut in their reimbursement.

Unless somehow your provider contract permits it, payers don't have the statutory authority to pass this 2% reduction to its physician providers. So pay attention to your "allowed amounts" to make sure this isn't happening to your current reimburement.

Have questions? I’m here to help.

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Reed Tinsley, CPA for Physicians