The CMS directive describes the policy and operational adjustments the agency is making to accommodate the federal budget reductions resulting from sequestration that impact state operations and state survey agency (SA) functions.
The overall FY 2013 survey and certification Medicare budget is reduced by 5% from the FY 2012 level, amounting to approximately $19 million." Of the total reduction, CMS expects State allocations to be reduced by 2.5% to 3% from the FY 2012 national budget level.
The remaining reduction will be taken from CMS Central Office (CO) functions, contractual services, and 1-time budget items.
CMS emphasizes that states are expected to adhere to CMS priorities in conducting all survey and certification work and that these adjustments are intended to help states meet their priorities within the reduced budget.
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