Under the requirements of the Congressional budget resolution, the Senate Finance Committee and the House Energy and Commerce Committee are expected to consider reconciliation legislation as early as the week of October 17 that contains at least $10 billion in spending cuts over five years in programs under their jurisdictions.
While it has been previously assumed that Medicaid should be the principal target for these cuts, reductions in overpayments to private Medicare managed care plans could achieve Medicare savings that would meet or even exceed the $10 billion in required savings. Recent media reports indicate the Senate Finance Committee now may be looking to Medicare as the source for much of these savings.
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