A new report, Affordable Care Act Update: Implementing Medicare Costs Savings, released today by the Center for Medicare and Medicaid Services (CMS), confirms that the Affordable Care Act is on track to save money and strengthen the Medicare program, all while protecting seniors guaranteed benefits. And the savings and improvements start right away. According to the new report, provisions for which implementation has already advanced—along with the Administration’s ongoing efforts—will save nearly $8 billion within the next two years. Over time, the savings only increase – in the next 10 years, the new law will save $575 billion.
Reducing health care costs and maximizing savings is an important part of the Affordable Care Act. In 2009, the U.S. spent more than 16% of its Gross Domestic Product (GDP) on health care and, without reform, the nation’s health care spending would have reached unsustainable levels. The new law will help reform this broken system, save money for Medicare and give seniors higher quality care. As the report notes, the new law will implements a number of provisions that will save money and improve care like programs to help reduce avoidable hospital readmissions and fight hospital acquired conditions.
Stephanie Cutter is Assistant to the President for Special Projects