Savings targets

The savings targets will be calculated by the CMS Chief Actuary.  Each year’s savings target will calculated by multiplying the total amount of projected Medicare program spending for the proposal year by the lesser of (i) the amount by which the projected Medicare per capita growth rate for that year exceeds the projected Medicare per capita target growth rate  (expressed as a percent); or (ii) the following percentages –

  • For implementation year 2015, 0.5 percent;
  • For implementation year 2016, 1.0 percent;
  • For implementation year 2017, 1.25 percent; and
  • For implementation year 2018 and thereafter, 1.5 percent.

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