Wiki Sequestration

[shruthi]

Hi All,

Have come across several scenarios in which case Original Medicare is paying 100% of allowed amount, but AARP Medicare is paying 98% of allowed amount.
Note: 98% - As per sequestration there will be 2% mandatory payment reduction due to government budget saving.

Can anyone confirm if the concept of sequestration is only on Medicare advantage plans (AARP Medicare) or even for original medicare insurance.

Thanks in advance

 

[CodingKing]

When it comes to medicare advantage you will need to check your contracts. It was a hot issue a few years ago and one MA plan was sued. There is no requirement from CMS that MA plans are to follow sequestration, however if its written in your contracts that it applies

Some additional information

http://www.modernhealthcare.com/article/20150827/NEWS/150829886