Sequestration Takes Effect Today - AGS Update
February 28th, 2013
Sequestration kicked in today, Friday, March 1st. The sequester which was originally scheduled to take effect January 2nd was put off by two months as part of a last-minute fiscal cliff deal on New Year's Day.
In addition to a one year extension of SGR, also part of this deal, some of the initial sequester cuts for 2013 were averted. The original 8.2% across the board cut to domestic programs like Title VII and VIII Geriatrics Workforce Training Programs and the National Institute on Aging is now 5.1%. While AGS does not want to see these programs cut by any amount, this was a move in the right direction.
Also part of the sequester, Medicare provider cuts will be limited to 2%. There will be no cuts to beneficiaries. This will affect providers and hospitals. Under special rules included for the sequester, Medicare reductions would apply to services provided on or after April 1st, which is the first day of the first month after the sequestration order is issued. AGS and other provider groups hope that Congress can find a solution and avert the cuts before they take effect.
Veterans' Programs and Medicaid are both exempt from these sequestration cuts. Although the impact on providers and the healthcare infrastructure will undoubtedly be felt by patients.
Sequestration is here, at least for the short-term, and it is up to Congress to act to stop or mitigate these cuts. Furthermore, since the cuts are across the board, departments and agencies such as Health and Human Services and the National Institutes of Health have little discretion in implementing the cuts.
The real fight for AGS lies within the appropriations process for the remainder of the fiscal year. It is anticipated that as Congress looks toward the March 27th deadline to provide continued funding for discretionary programs for the remainder of FY 2013, Congress may seek to modify either the amount of cuts under sequestration and/or provide flexibility to departments and agencies on the implementation of the cuts. This is our best opportunity to get the programs important to you and the patients you serve back to pre-sequestration levels.
We are currently working in Washington to protect beneficiary programs and achieve appropriate funding for the discretionary programs that benefit older Americans. AGS will be circulating an advocacy alert once the appropriations process gets under way. Please check the AGS website in the coming weeks for additional updates.
Modified On: March 1st, 2013
