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$14B in Medicare Cuts under ACA for Massachusetts

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During the Presidential race, we have heard a lot about the $716 billion that will be cut from Medicare under the ACA and the savings included in Congressman Ryan’s budget. (See my thoughts on the difference in the proposals at Boston.com)

Locally, the important question is, how will the ACA cuts impact Massachusetts?

An updated working paper, released this morning, from the University Of Minnesota puts some numbers to this question.

So how much will future reductions be for Medicare Fee-For-Service and Medicare Advantage Payments in Massachusetts?

Roughly $14 billion in reductions from 2013-2022.

Reduction in Medicare

Just for review, the ACA cuts $716 billion in the following ways:

The ACA reduces annual updates to Medicare’s payment rates for most provider services in the Medicare Fee?For?Service (FFS) program by $415 billion, including:

o $260 billion from hospital services

o $66 billion from home health services

o $39 billion from skilled nursing services

o $17 billion from hospice services

o $33 billion from other services

The ACA changes how payment rates are set in the Medicare Advantage (MA) program, leading to payment reductions totaling $156 billion.

The ACA reduces disproportionate share hospital (DSH) payments from Medicare by $31 billion and by $25 billion from the Medicaid program.

The ACA also reduces Medicare spending through other provisions, like the Independent Payment Advisory Board (IPAB), by $114 billion.

Care to know more about the reductions in your county? The report has that breakdown as well, check it out.

Find me on twitter: @josharchambault