The tally is in: Providers who serve Medicare beneficiaries could see reductions of $11 billion in 2013, according to a report released today by the Office of Management and Budget (OMB).
The OMB report finally puts financial numbers to the government’s bipartisan effort to settle the budget by forcing a broad, $120 billion slash in spending, a plan known as “sequestration.”
The Medicare cuts would be part of a long list of cost reductions across more than 1,200 federal programs and departments. The cuts will not threaten Medicare beneficiaries, but would make sharp reductions in reimbursement for healthcare providers.
The OMB report puts an end to the recent guessing game of how much of the $120 billion in required cuts would come from Medicare. However, the OMB report remains an estimate, since Congress could still act to amend it.
If the OMB estimates are not amended by Congressional action, the sequestration process—which has been viewed as an unpopular option by both parties—will begin January 1, 2013.