OMB: Sequestration would cut $11 billion in Medicare payments to providers
White House will reach a decision on 2% cut to Medicare providers within 30 days
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.