The debt-ceiling crisis in United States during 2011 paved way for the imposition of Budget Control Act of 2011. The measures to reduce discretionary spending kicked off in January 2013 with the objective of eliminating the $1.2 trillion in federal spending over the next ten years. These regulatory measures are affecting ambulatory surgical centers (ASCs) in the form of a 2 percent cut in Medicare reimbursement.
The payment reductions for Medicare physician services came into effect on April 1, 2013. The cuts are applicable to the payments for the services managed under Medicare Hospital Insurance (Part A), Medicare Medical Insurance (Part B), contractual payments to Medicare Advantage Plans (Part C), and Medicare Prescription Drug Plans (Part D). Industry experts point out that these reimbursement cuts will be felt by all type of health care providers.
These Medicare reimbursement cuts represent around 12% or $9.9 billion of the government’s spending reductions, got partially through lower payments to physicians and other health care professionals. Moreover, even temporary tax cuts scheduled to end in 2013 have been extended such as the 2001 and 2003 Bush income tax cuts, the estate and capital gains tax, and a payroll tax cut.
The reimbursement reduction will not affect low-income subsidies and additional subsidies for the beneficiaries who spent more than the catastrophic limit in Medicare Part D.
These cuts are worrying for both physicians and patients. Healthcare practices are already facing falling revenues due to rising costs. Moreover, Medicare reimbursements are already delayed. The low reimbursement rates are also prompting physicians to stop seeing Medicare patients.
A professional medical billing and coding company can provide a great deal of relief in this scenario. Medicare Risk Adjustment Coding services are provided to ensure your practice timely and measurable revenue gains. Qualified medical billing specialists with extensive experience in Medicare and Medicaid rules and regulations and accounts payable management work to minimize claim denials and maximize your reimbursements.