did aca take money from medicare and if so how was it used.

It is true that the Affordable Care Act (“Obamacare”, or the ACA) cut Medicare spending to finance a new health program. The number that the Romney-Ryan ad cites is from a Congressional Budget Office (CBO

) report that estimates repealing the ACA would increase Medicare spending by $716 billion through 2022.

Full Answer

Will the ACA’s reforms make Medicare more viable?

While the ACA’s reforms hold significant potential to make Medicare more viable and successful in the future, Medicare’s long-term fiscal solvency, complexity, and gaps in coverage remain unaddressed. As millions of Americans age into Medicare, federal budgetary pressures will inevitably focus attention on more fundamental reform of the program.

Did Obamacare really cut Medicare spending by $716 billion?

It is true that the Affordable Care Act (“Obamacare”, or the ACA) cut Medicare spending to finance a new health program. The number that the Romney-Ryan ad cites is from a Congressional Budget Office (CBO) report that estimates repealing the ACA would increase Medicare spending by $716 billion through 2022.

How does the Affordable Care Act affect Medicare spending?

But the Affordable Care Act does include provisions that reduce future increases in Medicare spending. In other words, the law slows down the rising costs of Medicare. It’s also important to note that the savings come at the expense of insurers and hospitals, not beneficiaries.

What is the Affordable Care Act (ACA)?

It is more commonly known as the Affordable Care Act (ACA) or its nickname, Obamacare. The ACA significantly changed the healthcare system in the U.S. by reducing the amount individuals and families paid in uncompensated care. The act requires every American to have health insurance and provides assistance to those who cannot afford a plan.

What did the Affordable Care Act do to Medicare?

Medicare Premiums and Prescription Drug Costs The ACA closed the Medicare Part D coverage gap, or “doughnut hole,” helping to reduce prescription drug spending. It also increased Part B and D premiums for higher-income beneficiaries. The Bipartisan Budget Act (BBA) of 2018 modified both of these policies.

How would ACA repeal affect Medicare beneficiaries?

Dismantling the ACA could thus eliminate those savings and increase Medicare spending by approximately $350 billion over the ten years of 2016- 2025. This would accelerate the insolvency of the Medicare Trust Fund. Undoing the ACA would jeopardize these fiscal gains and harm Medicare's long term financial stability.

Who has benefited the most from the ACA?

Black Americans, children and small-business owners have especially benefited. Thirty-seven states have expanded Medicaid, deepening their pool of eligible residents to those who live at or below 138% of the federal poverty level.

How did the ACA impact Medicaid?

The ACA also made a number of other significant Medicaid changes, such as preventing states from reducing children's Medicaid eligibility until FY 2019; setting a uniform standard for children's eligibility at 138 percent FPL; streamlining eligibility, enrollment, and renewal processes; and updating payments to safety- ...

Did Obamacare expand Medicare?

Obamacare's expanded Medicare preventive coverage applies to all Medicare beneficiaries, whether they have Original Medicare or a Medicare Advantage plan.

How does the Affordable Care Act affect the elderly?

"The ACA expanded access to affordable coverage for adults under 65, increasing coverage for all age groups, races and ethnicities, education levels, and incomes."Under the ACA, older adults' uninsured rate has dropped by a third, indicators of their health and wellness have improved, and they're now protected from ...

Who suffered the most from Obamacare?

The ACA had an equalizing effect, reducing racial and ethnic disparities in coverage. Hispanic people had the highest initial uninsured rate and experienced the greatest gains (an overall decline of 15 percentage points in uninsured rates and a nine-point decline in the gap with whites).

Why did ACA fail?

Unfortunately, the reality has been the opposite. Choices plummeted. Premiums and deductibles spiked for plans that covered fewer providers and hospitals. Enrollees complain of a “two-tiered system” given that many doctors refuse to take ACA plans because of their low payment rates.

What are the cons of the Affordable Care Act?

Cons:The cost has not decreased for everyone. Those who do not qualify for subsidies may find marketplace health insurance plans unaffordable. ... Loss of company-sponsored health plans. ... Tax penalties. ... Shrinking networks. ... Shopping for coverage can be complicated.

How did the Supreme Court ruling on the ACA affect Medicaid?

The Supreme Court did limit one portion of the ACA: The federal government cannot yank existing Medicaid funds from states who refuse to comply with an expansion of Medicaid.

Has the ACA improved the quality of care?

The ACA is the most consequential and comprehensive health care reform enacted since Medicare. The ACA has gained a net increase in the number of individuals with insurance, primarily through Medicaid expansion. The reduction in costs is an arguable achievement, while quality of care has seemingly not improved.

How is Medicare different from Obamacare?

What Is the Difference Between Medicare and Obamacare? Medicare is insurance provided by the federal government for people over the age of 65 and the disabled, and Obamacare is a set of laws governing people's access to health insurance.

How much did the Affordable Care Act save?

The Affordable Care Act (ACA) enacted savings estimated at that time of $716 billion to the Medicare program over ten years ( now estimated at $800 billion), which was used to pay for some of the cost of the new law under pay-as-you-go budget scoring conventions.

How much was Medicare robbed to pay for Obamacare?

Was Medicare Robbed $700 Billion to Pay for Obamacare? When talking about his plans for Social Security and Medicare, Gov. Mike Huckabee (R-AR) stated that Congress should not be “talking about getting rid of Social Security and Medicare that was robbed $700 billion dollars to pay for Obamacare.”.

How long will Medicare be solvent?

Partially as a result these changes, the Medicare Trust Fund is expected to be solvent through 2030, 13 years longer than projected before the 2010 law was passed.

Did Medicare reduce payroll taxes?

However, there was no reduction in the amount of money going towards paying for Medicare; rather, the law reduced the amount that Medicare spends. In fact, Medicare payroll tax revenues increased, increasing the amount that could be spent.

How did the Affordable Care Act change the healthcare system?

The ACA significantly changed the healthcare system in the U.S. by reducing the amount individuals and families paid in uncompensated care. The act requires every American to have health insurance and provides assistance to those who cannot afford a plan.

When did the Affordable Care Act become law?

Please try again later. The Patient Protection and Affordable Care Act was signed into law by President Obama on March 23, 2010. It is more commonly known as the Affordable Care Act (ACA) or its nickname, Obamacare.

What happens if insurance companies don't spend 80% of their premiums?

January 2011: A Florida judge rules that elements of the Affordable Care Act are unconstitutional.

What is the Affordable Care Act?

The Affordable Care Act is perhaps the greatest overhaul of the US health-care system, and it will provide coverage for over 94% of Americans. In addition, one of its key reforms includes health coverage for adults with pre-existing conditions, which generally had not been available up until now.

What is a provision that goes into effect to protect patients' choice of doctors?

Specifics include allowing plan members to pick any participating primary care provider, prohibiting insurers from requiring prior authorization before a woman sees an obstetrician/gynecologist (ob/gyn), and ensuring access to emergency care.

How many Democrats voted against the Affordable Care Act?

March 21, 2010: The Senate’s version of the health-care plan is approved by the House in a 219-212 vote. All Republicans and 34 Democrats vote against the plan.

How many Democrats voted for the 2009 Healthy Future Act?

December 24, 2009: In the Senate, 60 Democrats vote for the Senate’s version of the bill, called America’s Healthy Future Act, whose lead author is senator Max Baucus of California. Thirty-nine Republicans vote against the bill, and one Republican senator, Jim Bunning, does not vote.

How does the Medicare law affect hospitals?

It also penalizes hospitals with too many readmissions of Medicare patients who have heart attacks , heart failure or pneumonia within 30 days of a hospital stay.

How much will Medicare be reduced?

The nonpartisan Congressional Budget Office estimated that Medicare spending would be reduced by $716 billion over 10 years, mainly because the law puts the brakes on annual increases in Medicare reimbursement for Medicare Advantage, hospital costs, home health services, hospices and skilled nursing services.

How many states have Medicare cut doctors?

The American Medical Association says that in at least 11 states, Medicare Advantage plans have cut thousands of physicians. Critics worry that more doctors may stop taking Medicare patients or that patients will face lengthy waits for appointments or other changes.

How much less will Medicare get in 2022?

Other cuts include $66 billion less for home health, $39 billion less for skilled nursing services and $17 billion less for hospice care — all by 2022. Medicare costs will still grow, just more slowly than they would without the ACA. But some experts predict that beneficiaries will feel ...

What is Medicare Advantage?

About three in 10 Medicare beneficiaries are enrolled in Medicare Advantage options, which are premium insurance plans that often include dental, vision and drug insurance. These plans have been subsidized by the federal government for years. The ACA is simply aiming to equalize costs, according to its proponents.

Can Medicare Advantage plan reduce dental insurance?

There are only a few ways Medicare Advantage plans can cope with reductions in payments, says Wilensky, the former Medicare chief. "They can reduce some of the optional benefits, such as vision or dental coverage. They can raise premiums. And they can also tighten their physician networks," she says.

Did Medicare change before the law?

Insurers changed Medicare Advantage plans before the law, and they're still changing them, he says. "Overall, seniors are not paying that much more, and more people are still enrolling in Medicare Advantage plans," says Gruber, who advised the Obama administration on the ACA.

What does the ACA do for Medicare?

The Affordable Care Act achieves savings in the Medicare program through a series of payment reforms, service delivery innovations, and increased efforts to reduce fraud, waste, and abuse.

What is the alternative to the Affordable Care Act?

A prominent plan touted as the alternative to the Affordable Care Act is the budget proposal put forward by Congressman and Vice-Presidential candidate Paul Ryan. However, Mr. Ryan's budget proposal for the past two years has included the same $700 billion reduction in Medicare spending as in the ACA. [3] The Ryan plan, however, ends Medicare's guaranteed benefit design and turns the community program into a system of vouchers, leaving millions of beneficiaries in the hands of private insurance companies, with no guarantee of the coverage they need. The Ryan plan does NOT save money for people with Medicare, it doesn't save the Medicare program, and it does not help solve the nation's deficit. [4]

How much did Obama cut from Medicare?

A recent advertisement from the Romney-Ryan campaign claims that “Obama Cut $716 billion from Medicare… to pay for Obamacare.” It continues by claiming that “The Romney-Ryan plan protects Medicare benefits for today’s seniors and strengthens the plan for the next generation.”

What would Ryan's budget repeal?

Chairman Ryan’s budget would repeal the coverage provisions of the ACA, but would keep most of the $716 billion in Medicare cuts. In addition, Chairman Ryan’s budget would retain the $88 billion in Medicare cuts from the “ sequester ” (from a 2% across-the-board provider reduction) and calls for some additional Medicare cuts.

Is Medicare a premium support system?

Governor Romney and Congressman Ryan support implementing a premium support system in Medicare for those currently below the age of 55 (when they reach eligibility), which could result in substantial long-term savings.

Did Obamacare cut Medicare?

It is true that the Affordable Care Act (“Obamacare”, or the ACA) cut Medicare spending to finance a new health program. The number that the Romney-Ryan ad cites is from a Congressional Budget Office (CBO) report that estimates repealing the ACA would increase Medicare spending by $716 billion through 2022. This funding was used primarily ...

Will Medicare be kept under the ACA?

Although some lawmakers may not want to retain all of the Medicare reductions from the ACA, many of them stem from ideas with broad bipartisan support – particularly in the policy community – and should at least be kept on the table as we consider ways to slow the growth of Medicare.

Did Obama use Medicare savings?

President Obama supported using most of the $716 billion in Medicare savings to help pay for coverage expansion, and supports enacting further savings for deficit reduction. Congressman Ryan supports largely retaining those same Medicare savings, but repealing the coverage expansions and using the money – along with addition savings – for deficit reduction. Governor Romney believes those Medicare reductions, along with coverage expansions, should be reversed – and has not made any significant short-term Medicare proposals for deficit reduction.

Why did private insurers run Medicare?

Under President George W. Bush, private insurers began to run a subset of Medicare plans with the idea that more competition produced lower costs. However, those plans grew to cost more than traditional Medicare, so the Affordable Care Act pared down the payments to private insurers.

How much money was robbed from Medicare to fund Obamacare?

Huckabee said, "$700 billion was robbed (from Medicare) to fund Obamacare.". It’s an old claim and an old figure. The law does reduce Medicare spending, but not in the way Huckabee suggests.

Can Medicare beneficiaries have additional costs?

It’s possible that some beneficiaries could experience additional costs, reductions in service, or fewer hospitals that accept Medicare.

Who was the governor of New Jersey who defended his plan to raise the retirement age and change benefits for Social Security and?

Huckabee's provocative comment concluded a wonkish back-and-forth between him and New Jersey Gov. Chris Christie about entitlement reform. Christie defended his plan to raise the retirement age and change benefits for Social Security and Medicare, but Huckabee stressed that Uncle Sam was to blame.

Does Obamacare rob Medicare?

Obamacare doesn’t literally "rob" Medicare. But the Affordable Care Act does include provisions that reduce future increases in Medicare spending. In other words, the law slows down the rising costs of Medicare. It’s also important to note that the savings come at the expense of insurers and hospitals, not beneficiaries.

How does the Affordable Care Act affect healthcare?

The Affordable Care Act is likely reducing the country’s medical bills. A new report from the Urban Institute provides strong evidence that the law is directly lowering total health-care spending, even as it expands coverage to unprecedented levels. The report shows that projected national spending on medical services, doctors, drugs, and devices between 2014 and 2019 is now $2.6 trillion less than what was projected when the ACA was passed in 2010, and $2.1 trillion less than pre-ACA estimates. Most of this decrease in spending is likely due to external factors such as the sluggish economic recovery—people generally spend less when they have less, even on health.

What is the biggest decrease in healthcare spending?

The largest contributor to the decrease in forecasted health-care spending is Medicaid , with an overall reduction of $1 trillion for cumulative spending from 2014 to 2019. This decrease is the most obviously related to policy, but not one the ACA’s champions intended or would cheer. In the 2012 Supreme Court decision NFIB v. Sebelius, the Court severed the enforceability of the ACA’s Medicaid expansion to all people under a certain income threshold, thus making the expansion optional. Up until that point, Medicaid was mostly a program for poor children and their parents, but the intended expansion was a final piece of the ACA’s overall vision, finally expanding coverage to low-income adults who were childless and healthy. The Kaiser Family Foundation reports that 19 states have rejected the expansion, a decision that leaves millions of adults in a “ coverage gap ” with little to no affordable health-insurance options.

Does Obamacare reduce health care spending?

Data finally shows that Obamacare is reducing health spending, one of its original stated goals. But as long as a disproportionate amount of those savings come from a ruling that gutted a major coverage provision, and as long as the savings aren’t felt in beneficiaries’ pockets, the ACA still has work to do.

Has the ACA reduced out of pocket spending?

The ACA has reduced out-of-pocket spending —premiums, uninsured payments, copays, or coinsurance all paid by an individual instead of an insurer—but the magnitude of that change is in flux. The fact that Urban Institute’s projections suggest that out-of-pocket spending increased by $2 billion over the CMS 2014 projections might be cause for worry, especially as private insurance premiums look like they’ll get bigger over the next year. The report’s graphs show current out-of-pocket projections steadily decreasing relative to original projections over the next three years, but if market places are shaken up or continue to struggle to enroll healthy young adults, those curves may change.