HHS: Affordable Care Act saves Medicare $120 billion

by Joan McCarter for Daily Kos

The Centers for Medicare and Medicaid Services released a new report [pdf] on the projected savings to the Medicare program from adoption of the Affordable Care Act. At the White House blog, White House Deputy Chief of Staff Nancy-Ann DeParle writes:

The report finds that the tools in the Affordable Care Act and other steps we have already taken will save nearly $120 billion for Medicare over the next five years and help deliver better care to people on Medicare.

Many of these reforms were made possible by the Affordable Care Act. The new law rewards doctors and hospitals for providing high-quality care and offers new tools to help law enforcement and the Medicare program crack down on waste fraud and abuse. Other steps like improving care for patients with disabilities and bringing down the cost of durable medical equipment build on initiatives undertaken at CMS that will also reduce costs. And we recently announced the launch of the Partnership for Patients, a new public-private partnership that will help improve the quality, safety, and affordability of health care for all Americans. Already, more than 3,000 organizations, including 1,500 hospitals, have signed a pledge to become part of the Partnership for Patients. This has the potential to save up to $10 billion for Medicare through 2013.

Further reforms the White House wants to include in deficit talks would save an additional $200 billion over the next decade. Those reforms include strengthening the Independent Payment Advisory Board, which will recommend provider payment cuts, and decreasing payments for prescription drugs.

(More here.)