CHA News Article

White House Releases Report on Sequestration

The White House has released its report on the automatic budget cuts, known as sequestration, mandated by the Budget Control Act (BCA) of 2011. BCA requires a 2 percent cut to Medicare, representing an $11 billion cut to Medicare in fiscal year 2013. CHA estimates California will lose $1 billion in payments to all Medicare providers. 

Additional cuts in non-defense discretionary budgets would come from the National Institutes of Health ($2.52 billion) and funding for health insurance exchanges created by the Affordable Care Act ($66 million). In the report, the White House calls on Congress to replace the “blunt and indiscriminate instrument” of sequestration with a balanced deficit package. CHA will continue to work with Congress to ensure Medicare payments to hospitals are not threatened further. The report is available at

In addition, the American Hospital Association (AHA) has estimated the number of jobs that could be lost due to sequestration in a report included in CHA News earlier this week. The AHA report is available at