One of the direct cuts to Medicare was a cut in funding for Medicare Advantage plans. These are Medicare Plans that meet Medicare requirements but are administered by private insurance companies. About 25% of Medicare recipients are enrolled in Medicare Advantage Programs. However, with the fall elections looming, President Obama has removed that cut and has actually increased funding for Medicare Advantage.
Good move Mr. President! I am enrolled in a Medicare Advantage program and its saving me a lot of money.
I’d be wary of these projections. In 2010, the Administration was still on its 2009 glide path, when it grasped at every argument supporting drastic “reform.” Now, it needs to demonstrate benefit due to the ACA and watch: whatever the real reasons for changes anticipated in Medicare outlays, Obama will claim that “we’ve already saved xx billions in Medicare costs due to the Affordable Care Act.”
Given the fog that lies over huge government programs like Medicare, it’easy to jigger a couple of assumptions that significantly change a five-year projection which is at best a good guess anyway
One thing that remains unexplained is that much of the prudence in spending only came with the Medicare reform of 2003, which exposed seniors to more of the cost of their own healthcare.