Automatic Medicare cuts would save government $123 billion, report saysa report.
The 12-member bipartisan committee is tasked with shaving at least $1.2 trillion over 10 years off the federal budget deficit by Nov. 23. If they do not reach an agreement, automatic 2% cuts to almost all Medicare programs will go into effect. A Congressional Budget Office report released Monday found that the cuts would save $123 billion over the next 10 years. That means Medicare Part B would lose about $31 billion in premiums starting in fiscal year 2013, The Hill reports.
Nursing home groups worry any future Medicare cuts would derail the long-term care industry. But some analysts argue that automatic reductions are preferable to other deficit reduction strategies.