Sequestration – 2% Payment Reduction/Updated June 13, 2014 – Replaced claims will be on RAs for June 17 and July 1, 2014, payment dates

As a result of the Budget Control Act of 2011, Medicare implemented a payment reduction of 2% for dates of service on or after April 1, 2013. MHCP initially determined that services they paid based on the Medicare rate were also subject to the 2% reduction. After more research, they found they did not need to apply the Medicare reduction to the amount they paid on a claim. MHCP will replace claims that were incorrectly reduced. Payment will appear on RAs for the June 17, 2014, and July 1, 2014, payment dates.