HHS: Health law saves Medicare $120 billion

The administration credits the significant savings to changes in the Medicare program that were put in place by the health law combined with other steps to cut down on fraud and abuse, quality of care incentives, and efforts to streamline care for people with disabilities.

The Hill: HHS Health Care Reform Law Saves Medicare $120 Billion
Democrats' health care reform law and other recent steps will cut Medicare costs by $120 billion over five years while improving care for seniors, the Obama administration claims in a new report released Thursday. The report from the Medicare agency comes as Republicans are pressing for large cuts to the nation's health care entitlements as part of negotiations on the debt ceiling. It points to provisions that aim to crack down on fraud and abuse, reward doctors and hospitals for quality of care and improve care for people with disabilities as key to future savings (Pecquet, 5/12).

Bloomberg: Health Law To Save $120 Billion In Initial Years
Medicare, the U.S. health insurance program for the elderly and disabled, said the health care law will save the program $120 billion in the next five years through lower payments to hospitals and insurers. About $50 billion of the savings come from reduced payments to insurers including Humana Inc. (HUM), WellPoint Inc. (WLP) and UnitedHealth Group Inc. (UNH), companies that lead the market in enrollees in Medicare Advantage, the privately run, government- subsidized portion of the U.S. health program. The savings prove the health care overhaul that Democrats passed last year is working, Medicare Deputy Administrator Jonathan Blum said (Armstrong, 5/12).