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All Medicare HME Payments to Be Cut an Additional 2%

News Alert from AAHomecare

Adding insult to injury, CMS announced today that sequestration cuts will apply to ALL Medicare Part A and B fee-for-service payments including those items under Medicare competitive bidding contracts. AAHomecare had strenuously argued that payments for contract items be exempted from the cut.

Medicare’s notice stated the effective date of the two percent cut for DME items will be based upon whether the date-of-service, or the start date for rental equipment or multi-day supplies, is on or after April 1, 2013.

According to CMS, the payment adjustment will be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare Secondary Payment adjustments.

Though beneficiary payments for deductibles and coinsurance are not subject to the cut, Medicare’s payment to beneficiaries for unassigned claims is.

CMS requests that all questions about reimbursement be directed to the provider's Medicare claims administration contractor.

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