The Centers for Medicare & Medicaid Services (CMS) announced that the 2 percent reduction in Medicare fee-for-service (FFS) payments will continue through March 31, 2015. The FFS payment reduction for claims for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS), including claims under the Durable Medical Equipment (DME) Competitive Bidding Program, was first announced in March 2013 and applies to claims with dates of service on or after April 1, 2013.The payment adjustment, part of the mandatory reductions in federal spending commonly known as sequestration, is required by the Budget Control Act of 2011.
The claims payment adjustment will continue to be applied to all claims after determining coinsurance, any applicable deductible, and any applicable Medicare Secondary Payment adjustments. Though beneficiary payments for deductibles and coinsurance are not subject to the 2 percent payment reduction, Medicare’s payment to beneficiaries for unassigned claims is subject to the 2 percent reduction.
