AHA Wants Medicare Advantage Sequester Cuts Clarified

Law360, New York (August 23, 2013, 5:51 PM ET) -- The Centers for Medicare and Medicaid Services must clarify that Medicare Advantage Organizations cannot automatically pass on sequestration-related payment cuts to hospitals if they violate contractually agreed-upon payment terms, the American Hospital Association said in a letter released Thursday.

According to the letter, dated Aug. 13 but not publicly released until Aug. 22, many MAOs — insurers and other managed health care organizations responsible for administering Medicare Advantage, or Part C, plans — have misinterpreted the budget sequester, cutting payments to providers that the sequester does...
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