Medicare providers already are taking steps in anticipation of sequestration cuts that are likely to occur April 1, including scaling back programs, eliminating positions and postponing infrastructure investments, according to a Washington, D.C. attorney.

Eric Zimmerman, an attorney with McDermott Will & Emery LLP, recently told me that many of his provider clients have been anticipating and planning for sequestration to take effect, "and will survive as a result."  

 "While hospitals and other providers will survive, these cuts definitely take a toll on the program and its beneficiaries," he said.

Medicare provider spending will be reduced 2 percent under the Budget Control Act of 2011 unless Congress intervenes. The White House and congressional Republicans have been blaming each other for the cuts, and it is unclear how the standoff will be resolved. Many observers however think the cuts will be rolled back or replaced at some point this year.