The Baucus bill calls for $400 billion in cuts to the growth of federal healthcare programs over the next 10 years to cover the cost of insuring nearly 300 million people, according to the report. As a result, hospitals and other healthcare providers could lose around $200 billion due to lowered reimbursements. The bill also calls for $113 billion in cuts to Medicare Advantage, which pays private insurers to provide additional benefits to Medicare patients.
Officials from AARP, which advocates for senior citizens, said in the report that the proposed cuts would have little impact on Medicare beneficiaries, as the cuts represent around 3 percent in what Medicare is expected to spend over the 10-year period. Other analysts say the cuts could cause health insurers to pare down services, raise premiums or pull out of rural areas.
The Congressional Budget Office said existing law ensures that Medicare beneficiaries would receive the same benefits in spite of the cuts.
Read the Washington Post’s report about the Senate Finance Committee’s Medicare debate.
