Healthcare law to save Medicare $8 billion by 2012, CMS says

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Provisions in the healthcare reform law will help save Medicare nearly $8 billion by the end of 2012, the Centers for Medicare & Medicaid Services said Monday in a report.

CMS is working to reduce unnecessary hospital readmissions, establish the Center for Medicare and Medicaid Innovation and create an Independent Payment Advisory Board. Other provisions in the Affordable Care Act aim to fight waste, fraud and abuse in Medicare. Savings to Medicare will rise to more than $575 billion over the next decade, CMS said. Also, beneficiaries should expect to see savings of about $200 a year on what their Medicare Part B premiums would have been without the new law—and about the same in reduced cost sharing, according to CMS.

“The Affordable Care Act helps us ensure the solvency of Medicare for nearly 20 years,” CMS Administrator Dr. Don Berwick said. “But just as importantly, Medicare beneficiaries will see significant savings in their own pockets through our efforts to keep premiums and cost sharing as low as possible.”