The Medicare provisions of the health care reform law are estimated to result in a net reduction of $428 billion in Medicare spending between 2010 and 2019, taking into account $533 billion in Medicare savings and $105 billion in new Medicare spending during the 10-year period.
In addition, the law generates Medicare-related revenue through the higher Medicare payroll tax ($87 billion in revenue through 2019), by imposing an annual fee on branded prescription pharmaceutical manufacturers and importers ($27 billion in revenue through 2019), and by eliminating the tax deduction for employers who receive Part D retiree drug subsidy payments, beginning in 2013 ($5 billion in revenue through 2019).
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