This new plan set to cut Medicare spending (23% of the US budget per a 2010 statistic) and use the money gained from cutting Medicare to the new program. The plan also intended to bring down deficits by reducing one of the biggest reasons for the deficit, Medicare spending. However, the costs for this program were underestimated by $1 trillion dollars according to Douglas Holtz-Eakin, former Congressional Budget Office director and would bring a bigger cost than Medicare.
