Debt Plan Targets Medicare Overpayments

The plan would also make some changes that directly affect what beneficiaries pay for the program. Beginning in 2017, the administration proposes to increase income-related premiums in Medicare Part B and Part D by 15%. About 25% of beneficiaries would be subject to the higher premiums. That would save about $20 billion over 10 years.

Under the Medicaid program, the president's proposal seeks to save about $66 billion over 10 years. The administration estimated that it would save about $26 billion by limiting the ability of states to use provider taxes as a way to boost their federal matching payments. Specifically, the administration proposes lowering the Medicaid provider tax threshold from 6% in 2014 to 3.5% in 2017.