Sequestration FAQ: How will the cuts affect California physicians? March 4, 2013 General California, Medicare, Medicare cuts, Sequestration, Sequestration cuts 0 Across-the-board federal budget cuts were triggered on Friday, March 1, because Congress failed to come to an agreement on how to reduce the federal deficit. Although it is still possible that Congress will reach some sort of a compromise before most of the cuts take effect on April 1, physicians should prepare for a 2 percent reduction in reimbursement from the Medicare program beginning in April. The 2 percent Medicare "sequestration" cuts are part of the $1.2 trillion in cuts required by the Sequestration Transparency Act, part of a deal worked out to end last year's debt-ceiling crisis. The cuts are evenly split between defense spending and discretionary domestic spending. The mandatory Medicare cuts will result in a savings of $11 billion in 2013. Medicaid is exempt from the cuts. The California Medical Association (CMA) continues to fight these Medicare cuts.While CMA understands the need to address our nation's budget deficit, CMA is urging Congress to take a more targeted approach than arbitrary across-the-board cuts that will harm public health and negatively impact access to care for children, seniors and military families. For more information, see "Sequestration FAQ: How will the cuts affect California physicians?" This FAQ answers the most commonly asked questions about the sequestration cuts as they relate to health care. This document will be regularly updated as additional details become available. Comments are closed.