Health Forward Foundation

The Budget Control Act of 2011: Implications for Medicare

The Budget Control Act of 2011: Implications for Medicare
November 7, 2012
Source: Kaiser Family Foundation

Beginning January 2013, Medicare spending will be subject to automatic, across-the-board reductions, known as “sequestration,” which is slated to reduce Medicare payments to plans and providers by up to 2 percent. This sequestration results from provisions in the Budget Control Act of 2011, signed by President Obama on August 2, 2011. The Act raised the debt ceiling and will reduce net federal spending by $2.1 trillion over ten years. This Act was a bipartisan compromise negotiated between the Administration and Congressional leaders, just before the nation was to breach the debt ceiling.





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