April 13, 2011 — The deficit-reduction plan unveiled by President Barack Obama today strengthens a cost-control tool in healthcare reform that organized medicine fears.
The savings mechanism is the Independent Payment Advisory Board (IPAB). Under the Affordable Care Act (ACA), the IPAB will advise Congress on ways to curb the per capita growth of Medicare spending if it exceeds growth-rate targets set by the law.
If it does not implement IPAB recommendations, Congress must enact policies that save just as much, or else let the Department of Health and Human Services make the cuts.
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