The $1.2 trillion automatic cuts that will be made if the 12-member committee falls short must be kept in mind. Although beneficiaries would be technically “safe” from this 2% cut in Medicare reimbursement, they will still be affected by what happens when doctors stop seeing Medicare patients. This 2% cut would be in addition to the already 6% decrease that was issued for the phasing in of Obamacare.

In response to these cuts there is a growing trend in hospital consolidation where private payers are charged more to make up for the public payers’ lower reimbursement levels. With the institution of Obamacare, this cost shifting will continually become more pronounced, raising premiums for the privately insured