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Polsinelli Shughart Health Reform and Related Health Policy News
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An executive summary of political, legal and regulatory issues that may impact your business, prepared by Polsinelli Shughart Health Care legal and Public Policy professionals.


Health Reform + Related Health Policy News

Update for September 19, 2012


Top News


White House Estimates Sequestration will Cut Medicare by $11.1 Billion

Medicare spending will be reduced by 2 percent in 2013 under the across-the-board sequestration that is required as part of the Budget Control Act. The White House's Office of Management and Budget on September 14 issued a report on the mandatory sequestration, and found that Medicare provider spending will be reduced by $11.1 billion in 2013 unless changes to current law are made. The cuts are part of a budget deal reached in 2011 and are scheduled to be implemented over the next nine years. The report estimated that mandatory Medicare Part A spending would be reduced by about $5.6 billion, Medicare Part B spending would be reduced by $4.9 billion. Part D spending would be reduced by $559 million. Mandatory Medicare funding on fraud and abuse programs would be cut by $66 million. The sequestration also would cut grants to states for implementing the Affordable Care Act's (ACA) health insurance exchanges by $66 million. Some Medicare and health reform programs, however, are exempt from the sequestration. For example, the Pre-Existing Condition Insurance Plan, subsidies for purchasing coverage on the exchanges, and payments for quality improvement organizations will be exempt from sequestration. The sequestration report is available here.


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Additional Reading

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Federal Register

Click here to preview a summary of notices which appeared in the September 14 - September 19, 2012 Federal Register.




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