Administration To Propose $248 Billion In Medicare Savings | President Obama will propose $248 billion in Medicare savings and $72 billion in savings from Medicaid and other health care programs as part of his $4 trillion deficit plan, Sam Baker reports. Administration officials would not provide details, but indicated that 90 percent of the cuts would come from “reducing over-payments” to providers.
Jon Cohn reports that raising the Medicare eligibility age has been taken off the table, while Jack Tapper notes that the plan includes raising Medicare premiums on wealthier beneficiaries. “Part of this will include asking wealthier seniors who receive Medicare to pay higher premiums and accept fewer benefits — means-testing the program.” [HT: Austin Frakt]
From the White House fact sheet: $248 billion in savings from Medicare, with 90 percent of the savings, or $224 billion, comes from reducing overpayments in Medicare. Savings that affect beneficiaries do not begin until 2017 and the plan “does not propose to change the eligibility age for Medicare benefits.” Other health and Medicaid savings amount to $72 billion. And of course this is key: “The President will veto any bill that takes one dime from the Medicare benefits seniors rely on without asking the wealthiest Americans and biggest corporations to pay their fair share.”