Congressional Budget Office Report- $350 billion in excess Medicare spending occurs if Medicare Advantage reductions revoked


The Congressional Budget Office (CBO) in June 2015 submitted a report: Budgetary and Economic Effects of Repealing the Affordable Care Act. The CBO estimated that over the next 10 years, Medicare would spend $715 billion more if the ACA provisions that decreased payments to Medical Advantage plans and that decreased payments to the fee-for service sector were not continued.

The CBO report goes on to say that roughly half of that $715 billion dollars in increased spending would be secondary to the Medicare Advantage lowered payment rates not being maintained and roughly half would occur if the reduced payments to medical providers were not continued.

This means that approximately $350 billion dollars of excess Medicare spending would occur over 10 years if the reduction in overpayment to the Medicare Advantage plans is not maintained.

 

www.NutritionHeart.com/Medicare-at-Risk