The jury is still out on this one, because the long-term effects of Obamacare have yet to play out. The Congressional Budget Office estimates that $716 billion will be cut from Medicare to fund the Affordable Care Act over the next 10 years, a worry for Obamacare's opponents. But there are key improvements for Medicare recipients written into the law, which contains language stating that "nothing in this act shall result in a reduction of guaranteed benefits" regarding Medicare. The law provides for annual wellness exams and preventative care for seniors, and, as mentioned in the previous slide, works to reduce the game between Medicare Part D coverage and a recipient's prescription costs. However, out-of-pocket costs for Medicare Advantage plans (alternative plans to medicare that are offered by private insurers but regulated by the government) will go up, and options will shrink.
Looking forward, Obamacare's supporters argue that the law will ultimately serve to improve Medicare coverage by encouraging hospitals to improve care and placing more emphasis on preventative coverage. But the real impact of such changes won't be pinned down for years. For more information about how the Affordable Care Act will impact Medicare in the near term, AARP has this comprehensive guide.
