As sequestration applies to all Medicare Fee for Service providers, it will impact reimbursement for Medicare Parts A and B covered therapy services. All Medicare claims with dates of service on or after April 1, 2013 will have a 2% payment reduction applied to the Medicare reimbursed portion of the claim. For sites of service paid according to discharge as opposed to per diem rates, will see the 2% reduction applied to discharges on or after April 1. The reduction occurs after any copays, deductibles and any other contractual adjustments are made.
While the sequester will reduce Medicare reimbursements through the end of this fiscal year â€“ September 31, 2013 â€“ it will not reduce rates. This means that any updates to Medicare reimbursement rates for next year will be based on current rates.