Sequestration and Health Care

By definition, sequestration is the action of taking legal possession of assets until a debt has been paid off (Merriam Webster). In regards to the federal government, sequestration is a process that automatically cuts the budgets of all federal departments and agencies.

On January 1st of this year, sequestration was supposed to go into effect. However, the U.S. Congress passed P.L. 112-240 “American Tax Relief Act of 2013″ (aka fiscal cliff) delaying the start of sequestration until March 1st.

Sequestration and Health Care

Sequestration will have a large impact on health care.  The impact will be…………….

• Physicians who see Medicare patients will see an automatic 2% reduction in their reimbursement beginning April 1st
• Medicare Parts A and B (fee-for-service) claims dated on or after April 1st
• Claims for DME (durable medical equipment), prosthetics, orthotics, and supplies, including claims under DME Competitive Bidding program will be reduced by 2%
• Medicare’s payment to beneficiaries for unassigned claims is subject to the 2% reduction
• All services and programs within Medicare (all provider services, hospitals, Medicare Advantage plans, graduate medical education) will see a 2% reduction
• EMR “meaningful use” incentive payments to be cut by 2%

Sequestration impact on State Health Departments

Washington  - 2,850 children will not receive needed vaccines. $642,000 cut from public health programs

Oregon          -  1,670 children will not receive needed vaccines. $366,000 cut from public health programs

California     – 15,810 children will not receive needed vaccines. $2,621,000 cut from public health programs

Alaska          -  1,400 children will not receive needed vaccines. $237,000 cut from public health programs

Hawaii          -  760 children will not receive needed vaccines. $130,000 cut from public health programs

Idaho            - 890 children will not receive needed vaccines. $150,000 cut from public health programs

Nevada     –  1,150 children will not receive needed vaccines. $258,000 cut from public health programs

Utah         – 1,230 children will not receive needed vaccines.  $264,000 cut from public health programs

Arizona    - 2,570 children will not receive needed vaccines. $611,000 cut from public health programs

Montana  - 420 children will not receive needed vaccines. $95,000 cut from public health programs

Wyoming – 230 children will not receive needed vaccines. $352,000 cut from public health programs

Colorado – 2,240 children will not receive needed vaccines. $480,000 cut from public health programs

New Mexico – 790 children will not receive needed vaccines. $197,000 cut from public health programs

North Dakota – 760 children will not receive needed vaccines. $279,000 cut from public health programs

South Dakota – 950 children will not receive needed vaccines. $122,000 cut from public health programs

Nebraska – 760 children will not receive needed vaccines. $174,000 cut from public health programs

Kansas – 1,240 children will not receive needed vaccines. $273,000 cut from public health programs

Oklahoma – 1,490 children will not receive needed vaccines. $358,000 cut from public health programs

Texas         –  9,730 children will not receive needed vaccines. $2,402,000 cut from public health programs

Minnesota – 2,360 children will not receive needed vaccines. $507,000 cut from public health programs

Iowa  - 1,320 children will not receive needed vaccines. $291,000 cut from public health programs

Arkansas – 1,140 children will not receive needed vaccines. $279,000 cut from public health programs

Louisiana – 1,730 children will not receive needed vaccines. $433,000 cut from public health programs

Wisconsin – 2,540 children will not receive needed vaccines. $543,000 cut from public health programs

Illinois – 5,230 children will not receive needed vaccines. $968,000 cut from public health programs

Missouri – 2,500 children will not receive needed vaccines. $572,000 cut from public health programs

Indiana – 2,770 children will not receive needed vaccines. $619,000 cut from public health programs

Kentucky – 1,350 children will not receive needed vaccines. $414,000 cut from public health programs

Tennessee – 2,590 children will not receive needed vaccines. $606,000 cut from public health programs

Mississippi – 1,170 children will not receive needed vaccines. $283,000 cut from public health programs

Alabama – 2,110 children will not receive needed vaccines. $457,000 cut from public health programs

Georgia – 4,180 children will not receive needed vaccines. $925,000 cut from public health programs

Florida – 7,450 children will not receive needed vaccines. $1,796,000 cut from public health programs

South Carolina – 1,860 children will not receive needed vaccines. $442,000 cut from public health programs

North Carolina – 3,550 children will not receive needed vaccines. $911,000 cut from public health programs

Virginia – 3,530 children will not receive needed vaccines. $764,000 cut from public health programs

West Virginia – 760 children will not receive needed vaccines. $177,000 cut from public health programs

Ohio – 5,040 children will not receive needed vaccines. $1,102,000 cut from public health programs

Michigan – 4,400 children will not receive needed vaccines. $944,000 cut from public health programs

Delaware – 380 children will not receive needed vaccines. $86,000 cut from public health programs

Maryland – 2,050 children will not receive needed vaccines. $551,000 cut from public health programs

Pennsylvania – 5,280 children will not receive needed vaccines. $1,213,000 cut from public health programs

New Jersey – 3,930 children will not receive needed vaccines. $840,000 cut from public health programs

New York – 7,170 children will not receive needed vaccines. $1,070,000 cut from public health programs

Connecticut – 1,570 children will not receive needed vaccines. $341,000 cut from public health programs

Rhode Island – 530 children will not receive needed vaccines. $101,000 cut from public health programs

Massachusetts – 2,940 children will not receive needed vaccines. $625,000 cut from public health programs

New Hampshire – 680 children will not receive needed vaccines. $126,000 cut from public health programs

Vermont – 760 children will not receive needed vaccines. $331,000 cut from public health programs

Maine – 740 children will not receive needed vaccines. $127,000 cut from public health programs

A total of 130,500 children will not receive needed vaccines. A total of $28,455,000 will be cut from public health programs.

Source: http://www.whitehouse.gov/issues/sequester/

Sequestration and Health Care

As you can see, sequestration will have a huge impact on health care. Individuals who are concerned about this should directly call the 20 physicians who are currently serving in Congress and let them know your thoughts.