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Cost Containment and the Patient Protection and Affordable Care Act - page 21 / 30

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How will PPACA reduce prices?

Permanent reductions in Medicare reimbursement rates for hospitals, nursing homes and other facilities (§ 3401) - $196 billion in savings through 2019

Will Medicare reductions lead facilities to shift costs to private insurers?

Independent Medicare Advisory Board (§ 3403)

Will develop proposals to keep Medicare spending within statutory targets, and proposals will automatically take effect unless Congress adopts substitute provisions (cannot ration health care, raise costs to recipients, restrict benefits or modify eligibility criteria)

Also will provide Congress with recommendations for slowing the growth of health care spending in the private sector.

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