Federal officials say about $205 billion of the $418 billion in Medicare savings they hope to achieve over the next decade will come from spending on the Medicare Advantage program.
U.S. Centers for Medicare and Medicaid Services (CMS) predicts in a new report that it will cut just $15 billion in Medicare spending over the next 10 years by improving the quality of care that enrollees receive, and that just $4.9 billion will come from eliminating waste, fraud and abuse.
CMS hopes to save about $29 billion by changing the way Medicare pays providers.
The cost-cutting provisions are part of the new Affordable Care Act, the legislative package that includes the Patient Protection and Affordable Care Act (PPACA).
Medicare Advantage plans now cover 11 million of the 47 million Medicare enrollees.