In the United States federal budget, the sequester or sequestration refers to across the board reductions to the planned increases in federal spending that began on March 1, 2013. The cuts were enacted by the Budget Control Act of 2011 and initially set to begin on January 1 but that date was moved forward by two months by the American Taxpayer Relief Act of 2012. Sequestration began on March 1, but the cuts to Medicare payments begin on April 1. Although, negotiations continue, it seems unlikely that this will be resolved anytime soon, if at all.
Medicare payments will be reduced by 2%
Medicaid and VA are exempt from these cuts