From today’s Washington Post, a reminder that the Medicare Board of Trustees reports that Obamacare extends the solvency of Medicare and does so without any lowering of benefits to patients.
Repeal of Obamacare, as proposed by the Romney-Ryan ticket (and already passed by the House) would bring insolvency closer. It would also take insurance away from over 30 million people, eliminate the ban on pre-existing conditions, eliminate the new preventive care provisions for Medicare, re-open the prescription drug donut hole, etc.
The $716 billion in savings helped free up funds to pay for other health programs, like the expansion of insurance to 32 million Americans.
That was the primary purpose, at least. There was also a really important side effect: The health care law extended the solvency of Medicare’s Trust Fund. If the program pays hospitals less, each dollar stretches a little bit further. Earlier this year, the independent Medicare Board of Trustees estimated that with these cuts the trust fund would remain solvent through 2024.
Without those cuts, however, the budget gets a little tighter. Medicare keeps paying providers at the same rates it does now, but each dollar buys less. And that means, according to these trustees, that the trust fund would no longer be able to cover Medicare’s costs as soon as 2016.