For services on or after July 1, 2022, the reduction will increase to 2%. Which makes the reductions 60 cents to $1 approximately. The sequestration does not affect Medicare Advantage payments or VA payments.
Though beneficiary payments for deductibles and coinsurance are not subject to the payment reduction, Medicare’s payments are. Therefore, during the deductible period when Medicare is not making a payment, you may collect the full amount from the patient. But once Medicare is making payments the amount paid to the provider will be reduced and that is not an amount you pass on to the patient.
However, when you are a non-par provider (not accepting an assignment), you may charge the full limiting charge to the patient without any reduction, but the patient will be paid at a rate of 2% reduced from the non-par rate. This means non-par providers who are not accepting assignments will have no reduction but if they accept assignment they will be subject to the reduction.
