The Centers for Medicare and Medicaid Services (CMS) expect the health care reform law to result in more than $200 billion in savings through 2016 because of measures that include ending excessive payments to private insurers that offer Medicare Advantage plans and implementing new anti-fraud policies. The estimate came from a report released by the CMS’ Office of the Actuary. The report also said that health care reform lowers premiums and out of pocket costs for seniors, resulting in about 59.4 billion in savings through 2016.
“The Affordable Care Act is the key to lowering healthcare costs in a way that improves care for beneficiaries, instead of cutting services,” said CMS Acting Administrator Marilyn Tavenner. “In the short term, both taxpayers and beneficiaries will save billions thanks to the healthcare law. Over the long run, the Affordable Care Act will allow us to invest in new models of providing care that will save money and deliver higher-quality care.”