The CMS Office of the Actuary released a new report (pdf) today, indicating the Patient Protection and Affordable Care Act will achieve short-term savings in Medicare of more than $200 billion through 2016.
The PPACA is also projected to lower costs for Medicare beneficiaries (excluding Medicare Advantage beneficiaries) by $208 billion through 2021 through lower premiums and smaller out-of-pocket costs.
CMS said there are five main areas of the PPACA that will lead to the $200 billion in savings by the end of 2016:
• $68 billion: reducing excessive Medicare payments to Medicare Advantage insurers.
• $85 billion: reforming payments through technology and efficiency training.
• $10 billion: improving patient safety through the Partnership for Patients (assuming CMS reaches its goals of reduced readmissions and hospital-acquired conditions).
• $7.8 billion: enhancing Medicare fraud and abuse measures while also negotiating the best rates for durable medical equipment.
• $41 billion: expanding several health provisions, such as increasing benefits, lowering hospital payments for HACs and adjusting premium subsidies.
The PPACA is also projected to lower costs for Medicare beneficiaries (excluding Medicare Advantage beneficiaries) by $208 billion through 2021 through lower premiums and smaller out-of-pocket costs.
CMS said there are five main areas of the PPACA that will lead to the $200 billion in savings by the end of 2016:
• $68 billion: reducing excessive Medicare payments to Medicare Advantage insurers.
• $85 billion: reforming payments through technology and efficiency training.
• $10 billion: improving patient safety through the Partnership for Patients (assuming CMS reaches its goals of reduced readmissions and hospital-acquired conditions).
• $7.8 billion: enhancing Medicare fraud and abuse measures while also negotiating the best rates for durable medical equipment.
• $41 billion: expanding several health provisions, such as increasing benefits, lowering hospital payments for HACs and adjusting premium subsidies.
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