White House will reach a decision on 2% cut to Medicare providers within 30 days

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

The Obama Administration has one month to issue a report detailing whether Medicare providers will see 2% across-the-board cuts based on legislation signed by the president Tuesday.

As part of last summer's debt ceiling compromise reached by the “super committee,” the president was required to sign the Sequestration Transparency Act.  The legislation says Congress will enact $1 trillion in federal spending cuts, effective Jan. 1, 2013, if it failed to reach a bipartisan deficit-reduction plan.

The $1 trillion reduction, which is often referred to as “sequestration” cuts, includes a 2% cut in Medicare payments to healthcare providers, including skilled nursing facilities. Medicaid is not affected by the sequestration cuts.

The White House must send a report to Congress within 30 details detailing how the administration would carry out the sequestration cuts, The Hill reported. Congress would have to decide whether it agreed with the president's plan, or replace it with a plan of its own.

 

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