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Ultimately, reductions in MA payments were included in the Patient Protection and Affordable Care Act (ACA) passed in March 2010. As a result, when health reform rose to the top of the policy agenda following the election of President Obama in 2008, reform of the MA program was part of the debate.
The political environment had changed as well, as the 2008 election of Democratic President Barack Obama and a Democratic majority in both houses of Congress diminished the support among government leaders for the privatization of Medicare that had persisted over the last decade.
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The ACA, signed into law by President Obama in March 2010, included another major restructuring of the MA program and significant cuts in MA plan payments.
The Patient Protection and Affordable Care Act (PPACA), enacted in 2010, significantly affected both Medicare and Medicaid.
Available at http://www.kff.org/medicare/7729.cfm (accessed March 30, 2011) [Google Scholar]
Available at http://www.opm.gov/insure/ (accessed April 1, 2011)Orszag PR. Health Care and the Budget: Issues and Challenges for Reform.
In the Affordable Care Act cases (2012), the Supreme Court upheld (5–4) the constitutionality of the PPACA’s expansion of Medicaid but prohibited Congress from withholding federal Medicaid funds for existing beneficiaries to states that refused to expand their Medicaid rolls.
Starting in 2012 the legislation reduces some plan payments while preserving broad access to plans across areas and rewarding plans that provide high-quality care.
Federal subsidies to Part C were designated to be cut, and Medicare payroll taxes for high-income earners were set to increase starting in 2013.
About half of the 32 million people added to health insurance rolls as a result of the PPACA were to be added to Medicaid, since eligibility was expanded to cover (by 2014) anyone with an income below 133 percent of the poverty level.
Repealing the provision has broad public support, with a 2015 Kaiser Family Foundation poll showing 88 percent of Americans holding a favorable view of the idea.
Abrams, A. (2019, May 30). The Surprising Origins of 'Medicare for All.’ Retrieved from https://time.com/5586744/medicare-for-all-history/
Last modified May 5, 2022. https://www.retireguide.com/medicare/basics/history/.
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