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.

Categories
Accounting and Tax Services Litigation Support Managed Care Consulting Managed Care Contract Negotiations Medical Practice and Healthcare Entity Valuation Medical Practice Assessment Medical Practice Brokerage Medical Practice Embezzlement Consulting Medical Practice Management Medical Practice Merger Advice Medical Strategic Planning Newsletter Personal Financial Planning Oversight Physician Compensation Models Physician Compliance Physician Financial Management Services Retirement Uncategorized
About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read More >

Reed Tinsley, CPA