Congress passed and President Obama signed into law on Aug. 2 the Budget Control Act of 2011 (BCA) to increase the federal debt limit and avoid a projected default on U.S. government obligations. The BCA made reductions in future federal spending. It also created a process through which the Office of Management and Budget (OMB) will make automatic reductions in federal spending, known as a sequestration.
The BCA triggers these reductions if Congress does not pass and the President does not sign (or his veto is not overridden) legislation that reduces future estimates of the federal deficits by amounts specified in the legislation.
The reductions in federal spending that will occur if there is a sequestration will impact Medicare spending. This article describes that impact.
Read the article here.