Health Care Reform

Adding Up the Numbers: Understanding Medicare Savings in the Affordable Care Act

Washington, D.C.—(ENEWSPF)—October 6, 2010.  The comprehensive health care overhaul passed by Congress as the Affordable Care Act and then amended by the Reconciliation Act of 2010 includes changes in the Medicare program that are expected to reduce the federal deficit by $525 billion between now and 2019. Of this amount, about $424 billion comes from changes in coverage and payment rules. This includes limits on annual rate increases for hospitals and other providers that furnish health care to our nation’s 46 million elderly and disabled Medicare beneficiaries. The Affordable Care Act, or ACA, also includes cuts in payments to Medicare Advantage plans, private organizations that serve beneficiaries as an alternative to the original Medicare program.

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