The $716 billion in Medicare cuts in the Affordable Care Act will be felt disproportionately by insurers and providers in eight heavily populated states, according to a white paper published by the University of Minnesota.
The study found that while a majority of U.S. states will see their Medicare funding reduced by less than $10 billion over a decade, eight states will see cuts of $20 million or more over the same period:
- California;
- Florida;
- Illinois;
- Michigan;
- New York;
- Ohio;
- Pennsylvania; and
- Texas.
The reductions will not affect beneficiaries. However, about one-third of the cuts would come from payments to Medicare Advantage plans, while the rest would come from lower provider reimbursement.
