The $700 billion figure comes from the difference over 10 years (2013-2022) between anticipated Medicare spending (what is known as “the baseline”) and the changes that the law makes to reduce spending. The savings mostly are wrung from health-care providers, not Medicare beneficiaries — who, as a result of the health-care law, ended up with new benefits for preventive care and prescription drugs.
While it is correct that anticipated savings from Medicare were used to help offset some of the anticipated costs of expanding health care for all Americans, it does not affect the Medicare trust fund. Ryan, as House Budget Committee chairman, probably knows he’s playing a rhetorical game here. Federal budget accounting is so complex that it is easy to mislead ordinary Americans — a tactic used by both parties.
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Source: The Washington Post