Despite backlash from its opponents, a new study reports that “Obamacare” has helped extend the solvency of Medicare.
According to the “2013 Annual Report of the Board of Trustees of the Federal Hospital Insurance and Federal Supplementary Insurance and Federal Supplementary Medical Insurance Trust Funds,” Medicare will be solvent for two years longer than reported in the previous years report, and 10 years longer than reported back in 2009.
“The estimated depletion date for the HI trust fund is 2026, 2 years later than was shown in last year’s report”
Talking Points Memo points out that Marilyn Tavenner, the head of the Centers for Medicare & Medicaid Services, credits the Affordable Care Act for the increased life of the Medicare program.
“The Medicare Hospital Insurance trust fund is projected to be solvent for longer, which is good news for beneficiaries. Thanks to the Affordable Care Act, we are taking important steps to improve the delivery of care for seniors with Medicare.”
The Affordable Care Act saves $716 billion over the next decade from Medicare spending by reducing payments made to private insurers, hospitals and other providers. The ACA also requires that insurance companies spend 80 percent of their profits on insurance instead of pay to their workers or stockholders.
A previous report released in 2009, before the Affordable Care Act was passed, stated that 2016 would be the final year of solvency for Medicare. Since “Obamacare” became law in 2010, an additional 10 years have been added to the life of Medicare. While the Affordable Care Act is far from perfect, the positives are starting to out way the negatives in spite of conservative opposition.