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Ruling could help providers recover money from Medicare Advantage sequestration cuts
Modern Healthcare

A recent decision by a federal judge may help bolster providers’ lawsuits against Medicare Advantage plans over those plans’ decisions to slash reimbursement rates in response to federal budget cuts.

In the case at issue, 11 Florida providers are suing Humana, saying the insurer wrongly cut payments to them in response to the 2013 federal budget cuts known as sequestration. During sequestration, the CMS reduced payments to Medicare Advantage organizations by 2%, and many of those organizations then passed those cuts on to providers in the form of lower payments.

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