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

Written by Reed Tinsley, CPA | October 23, 2013

 

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.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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