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.
More Articles on Medicare:
GAO: HHS Should Cancel $8.4B Medicare Advantage Bonus Demonstration
Report: Medicare, Medicaid Spending Driven by Enrollment, Not Costs
CMS Adds “Spending Per Hospital Patient With Medicare” to Hospital Compare
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