Administration report sees $8B in Medicare savings

[ProSense]

Source: Associated Press

WASHINGTON – The new health overhaul law will start producing savings for Medicare right away, and over time add 12 years of solvency to the program's giant trust fund for inpatient care, the Obama administration says in a report to be released Monday.

Medicare will save about $8 billion by the end of next year, and $575 billion over the rest of the decade, the report said.

Release of the analysis comes ahead of the official annual financial checkup for Social Security and Medicare from the program's trustees, expected as early as this week. It provides support for the administration's position that the health care law secures and strengthens health care for seniors.

Republicans have argued that spending cuts called for in the law will undermine Medicare, and the government's own nonpartisan analysts have questioned whether some of the reductions are unrealistic. Polls show that seniors are more skeptical of the health overhaul than younger people, a political dilemma for Democrats in the fall congressional elections.


Read more: http://news.yahoo.com/s/ap/20100802/ap_on_bi_ge/us_health_overhaul_medicare_2

[madfloridian]

1. They are cutting payments to hospitals and doctors. Nothing to be proud about.

[ProSense]

2. No they are absolutely not

Obama signs bill sparing doctors from Medicare cuts

[madfloridian]

3. This is from your own link at your own OP

"The single biggest slice of the Medicare cuts is from reductions in projected payment increases to hospitals and other providers over the next 10 years. That's followed by cuts to private insurance plans that now cover about 1 out of 4 seniors. Nonpartisan government experts say those so-called Medicare Advantage plans are overpaid when compared to the cost of care in traditional Medicare.

But the insurance industry says the cuts will mean steep premium increases for millions of seniors in the plans. That could trigger an exodus, with seniors returning to traditional Medicare.

Cuts to the private insurance plans start right away, while reductions to providers phase in more gradually. The report says Medicare Advantage cuts account for $5.3 billion through 2011, more than 60 percent of the total estimated two-year savings of $7.8 billion."

The cuts to Medicare Advantage plans will increase the return to traditional Medicare for sure. But there will be no savings for seniors as Medigap costs increase.

[ProSense]

4. That is not the same thing

Reduction in increases is not the same as a 21 percent cut. Medicare Advantage cuts are related to the donut hole.

The doctors' fee formula needs to be fixed, which is the reason Obama signed the temporary bill. In fact, the temporary measure reversed the cuts and increased payment 2.2 percent.

[JDPriestly]

6. Medicare Advantage plans are bound to use this as an excuse to

raise rates. That is really bad.

Let's say, like my neighbor, you have a bad back problem. If you have Medicare Advantage, your doctor can refer you first to a physical therapist. That doctor is tracking all your care and probably has therapists that he trusts and knows are in the network.

If you are just on Medicare, you go to your doctor, and he subscribes painkillers. Before you know it you have a much bigger problem than back pain, and the back pain is not really being treated.

Medicare Advantage plans -- at least my Kaiser plan -- is worth a little extra money. Medicare would save a fortune if it made alternative treatments more available to seniors -- treatments like physical therapy, exercise classes, nutrition information, etc. Those are the keys to inexpensive care for the elderly.

[JDPriestly]

5. My mother's insurance rates will go up as will ours, I suspect.

That is because we have the advantage plans. It's very bad news for those of us on those plans.

I cannot imagine trying to find doctors and specialists who would take straight Medicare in L.A. My Kaiser Advantage is relatively inexpensive and manages my medical care. Fortunately I don't need much thus far, but I cannot imagine navigating through the maze of specialists who will and will not take Medicare in L.A.

The Medicare cost reductions are really bad for a lot of seniors.

[L0oniX]

7. Pinching pennies on HC while the pentagon gets a trillion.