Obama Myth: Obama Isn't Really Cutting $716 Billion from Medicare

This one has been back and forth a lot, not helped by the “fact checkers” who apparently took their accounting classes in Cloud Cuckoo Land.

Basically, everyone knows that the ObamaCase plan takes $716 billion from out of Medicare and uses it to fund ObamaCare.  But is that “cutting Medicare”?

If you ask the Obama supporters, no — because, as Mother Jones (yes, Mother Jones!) put it:

Mitt Romney says that Obamacare cut $716 billion in Medicare spending. Is that true?

Yes it is. This is the most recent estimate from the CBO for the ten-year period from 2013-2022.

So seniors are getting screwed?

No, probably not.

Then who is?

Mostly hospitals and insurance companies.

How so?

About a third of the cuts come from reduced reimbursements to hospitals. About a third comes from reducing overpayments to insurance companies for Medicare Advantage plans, which are private competitors to standard Medicare. The remaining third comes from cuts in reimbursements to various other healthcare providers. More details here.

Their argument is that it’s not “really” being cut from Medicare because instead of cutting the benefit to seniors, they’re going to cut the amount paid out of those benefits for services.

Right.