For a second time Billy, try to understand the issue:
Q:Where did the $500 million taken from Medicare this year under President Obama’s health care law come from, and how does it affect Medicare for retiring baby boomers in 2012?
A:The Affordable Care Act had a number of provisions that achieved savings in the Medicare program. Those savings, which is what you are referring to, come from primarily two places: payments and cuts. There is a slowdown in the increase of payments to hospitals, skilled nursing facilities and other health-care providers. In other words, their reimbursements will still increase, but they won't increase as much as they would have under old law. There will also be savings from actual cuts in reimbursements to Medicare advantage plans—which had been traditionally overpaid by the federal government, getting paid more than 100% of what the traditional or fee for service. The private insurance companies were getting 110% to 113% of what it costs the traditional-run government programs to take care of somebody—that number is getting ratcheted down to 100% over the next three to five years.
The important thing to know is that these savings do two things: they will make the Medicare program more sustainable and are not expected to lead to any kinds of problems for baby boomers or anyone else on the Medicare programs. There are no cuts to benefits or increased premiums to people with Medicare because of these savings.
Read more:
Medicare Changes Every Boomer Needs to Know About for 2012 | Fox Business
