Paying for the Affordable Care Act

It’s clear to everyone that the Affordable Care Act (ACA) is what we’re calling health reform now, right? Good.

Anyway, Ezra Klein pointed readers to a handy pie chart from The Tax Foundation that shows where the money will come from to pay for ACA goodies. I agree with Klein that it would have been terrific if the creators had broken out the Medicare savings.


Taking a peek at the CBO scoring document it looks like about 43% of the Medicare cuts are in reductions in updates to fee for service rates, mostly for hospital payments I believe. About 30% is cuts in Medicare Advantage payments. The rest is a grab bag of other stuff each piece of which is small.

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