OMB: Sequestration would cut $11 billion in Medicare payments to providers

White House proposes 'accelerated' skilled nursing facility payment cuts
White House proposes 'accelerated' skilled nursing facility payment cuts

Failed budget deficit negotiations in Congress could result in an $11- billion reduction in payments to Medicare providers, a government analysis released Friday predicts.

Under the terms of the Budget Control Act of 2011, if Congress cannot agree on a plan to reduce government spending by $1 trillion, a set of “triggered” or “sequestered” cuts will be enacted on Jan. 1.

If a stalemate occurs, the Obama Administration favors a 2% reduction in payments to Medicare providers, rather than cutting beneficiary benefits, according to a report released by the White House's Office of Management and Budget.

Long-term care groups point out the 2% cut would result in the loss of 766,000 jobs in the healthcare sector over 10 years.

Click here to read the OMB's report.