Medicare AdvantageReimbursementMedium impact
MAPAP257 - Medicare Sequestration Alignment Policy - New
Blue Cross of Idaho·ID·Medical Policy
Effective date
Feb 1, 2026
We identified it
Jun 19, 2026
Summary
Blue Cross of Idaho Medicare Advantage plans will continue applying a 2% sequestration reduction to provider payments, aligning with federal CMS reductions that have been in effect since April 2013. This policy formalizes the existing practice of reducing payments by the same percentage that CMS reduces payments to Medicare Advantage Organizations.
Action Required
No immediate action required - this policy formalizes existing payment reductions that have been applied since April 2013. Billing team should be aware that Blue Cross of Idaho Medicare Advantage payments include a 2% sequestration reduction (or current CMS percentage) and verify this is reflected in current fee schedules and contracts.