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The $716 billion line gets people pretty riled up. When Ryan delivered it Wednesday, the convention floor roared. The problem is, the claim is flat-out wrong. “The Affordable Care Act doesn’t steal anything from Medicare,” Henry Aaron, a health-care expert at the Brookings Institution, tells me. “It actually improves Medicare’s finances. No matter how you slice it, the Affordable Care Act strengthens medical hospital insurance.”Business Week, "Obamacare doesn't steal from Medicare", August, 2012
From 2010 to 2019, Obamacare trims payments to providers by $196 billion. They agreed to take a cut because they will get so many new patients, thanks to the individual mandate.Congress determines how much providers are paid for procedures performed. Medical providers don't get to ratify the cuts. The payment schedule is take it or leave it.
Another $145 billion comes from phasing out overpayments to Medicare Advantage.Overpayments?
The spending cuts are in place to keep the system from going bankrupt.So there really are cuts.