The health care law instituted a number of changes to try to bring down future health care costs in the program. The total anticipated savings comes to $716 billion over the next 10 years, as determined by the nonpartisan Congressional Budget Office.
We should note that both parties agree Medicare spending is increasing too fast as baby boomers retire and medical costs increase. The government needs to find savings so those costs don’t overwhelm the federal budget in the future.
So, yes, Obama’s law did find $716 billion in spending reductions. They were mainly aimed at insurance companies and hospitals, not beneficiaries. The law made significant reductions to Medicare Advantage, a subset of Medicare plans run by private insurers. Medicare Advantage was started under President George W. Bush, and the idea was that competition among the private insurers would reduce costs. But the plans have actually cost the government more than traditional Medicare. The health care law scales back the payments to private insurers.
http://www.politifact.com/truth-o-me...ed-716-billio/