MEDICARE CUTS COULD HIT CALIFORNIA HARD

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By Victoria Colliver
Chronicle Staff Writer
The San Francisco Chronicle

About half the funds to pay for the nation’s new $940 billion health law will come from reduced federal government spending on the Medicare program – and, although it’s too early to gauge the impact on the 45 million Medicare beneficiaries, the idea is creating anxiety among many of them.

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Much of the worry – from both supporters and critics of the health insurance overhaul – centers on the government’s plans to cut payments for Medicare managed-care policies called Medicare Advantage. These plans, offered through private companies, cover 1.5 million Californians and just over 10 million nationwide.

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