On March 8th CMS notified Durable Medical Equipment (DME) Providers that reimbursement rates for all claims submitted will be reduced by 2% beginning April 1st, 2013. These latest cuts are part of the Sequester, mandatory across-the-board cuts in federal spending.

Claims with a Date of Service, or the start date for rental equipment, on or after April 1st, 2013 will have the 2% reduction rates applied.

This news follows an average 45% cut inflicted on the DME industry operating in 91 cities which was announced January 30th, 2013. The 45% cut, part of Round 2 competitive bidding, will take effect July 1st, 2013. Additionally, Reimbursement was reduced by an average of 32% in line with Round 1 of the Competitive Bidding Program. Round 1 was implemented in 9 cities on January 1st, 2011.