Tuesday, April 24, 2012

Medicare to Save $200 Billion Through 2016

Medicare is set to save $200 billion by 2016, according to a report released by the actuary for the Centers for Medicare and Medicaid Services on Monday.

The Obama administration has highlighted the positive aspects of the report ahead of a separate report from the Medicare Trustees, due out later Monday, that's due to project when Medicare will go bankrupt.

"According to estimates from the CMS Office of the Actuary, the over $200 billion in short-term savings to the Medicare program come from ending excessive payments to private insurers who offer Medicare Advantage plans, implementing antifraud measures, and changing provider payment policies to reflect improvements in productivity," the Health and Human Services Department said in a statement.

"In addition, according to the HHS assistant secretary for planning and evaluation, seniors and people with disabilities in traditional Medicare will see lower cost-sharing and premiums as a result of the Affordable Care Act, totaling $59.4 billion through 2016 and $208 billion through 2021."

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