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Thursday, September 13, 2012

Analysis: Eight States To Be Hit Hard by Reform Law's Medicare Cuts

The $716 billion in Medicare cuts in the Affordable Care Act will be felt disproportionately by insurers and providers in California and seven other heavily populated states, according to a white paper published Wednesday by the University of Minnesota, The Hill's "Healthwatch" reports.

The analysis, authored by HSI Network researcher Robert Book and the American Action Forum's Michael Ramlet, provides a state-by-state and county-by-county breakdown of the ACA's reductions.

The study found that while a majority of U.S. states will see their Medicare funding reduced by less than $10 billion over a decade, eight states will see cuts of $20 billion or more over the same period:

  • California;
  • Florida;
  • Illinois;
  • Michigan;
  • New York;
  • Ohio;
  • Pennsylvania; and
  • Texas.

The reductions will not affect beneficiaries, according to "Healthwatch." About one-third of the cuts would come from payments to Medicare Advantage plans, while the rest would come from lower provider reimbursement (Baker, "Healthwatch," The Hill, 9/12).



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