Medicare Trustees Reports 2010 and 2009: What a Difference a Year Makes
Thursday, November 18, 2010
by Andrew J. Rettenmaier and Thomas R. Saving
The new federal health care law - the Patient Protection and Affordable Care Act (or ACA) - uses cuts in Medicare to fund additional federal health care spending on nonseniors. The cuts come from reducing the growth in physicians' Medicare reimbursements using the existing sustainable growth rate (SGR) system and reducing future Medicare payment updates for hospitals and other nonphysician services by the economy-wide increase in productivity.