January 01, 2013

Does the Affordable Care Act “Cut” Medicare Spending?

Both political parties made the effect of the Affordable Care Act (ACA) on the future of Medicare funding a central issue in the recent presidential campaign. The Republican Party’s candidate warned seniors that the ACA will “cut” Medicare spending by $716 billion, implying that seniors would lose benefits they had enjoyed previously. However, not one political advertisement attacking “Obamacare” or speech delivered by the Republican nominee or his surrogates was able to point to a single example of how a Medicare beneficiary would receive lower benefits, face restricted eligibility, or pay higher costs as a result of the ACA.

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