New Report Finds SAFE Act Cuts Medicare Costs

The financial considerations and estimated impact of the Stopping Addiction and Falls for the Elderly Act (SAFE) Act (HR 7618) were recently analyzed by experts at the Health Management Associates (HMA). HMA’s report predicts between 340,000 and 420,000 Medicare fee-for-service beneficiaries would use the SAFE Act benefits each year, based on the assumption that 45% attend their annual wellness visit, 25% have a history of falls, and only 5% access direct physical or occupational therapy services.

HMA also estimated that the cost of these new Medicare benefits would be approximately $144 per visit, leading to $362 million in increased federal spending over the scoring window, based on procedure codes and growth tied to the June 2024 CBO Medicare Baseline. The estimated total Medicare savings from these interventions would be $524 million over ten years based on previous evidence from Medicare Advantage plans that held significant savings and patient outcomes from fall-reduction programs. In considering potential offset savings, however, the HMA report expresses uncertainty about whether CBO would factor in these falls prevention benefits.

Overall, the SAFE Act is estimated to cost $362M per year, with potential savings of $524M over ten years, resulting in a net savings of $162M over the decade.

The SAFE Act would incorporate no-cost falls risk assessments and prevention services by physical and occupational therapists into Medicare’s annual wellness benefit for Medicare beneficiaries nationwide. Falls among older adults are a significant health concern, leading to increased ER visits, hospitalizations, and reliance on pain medications, with the CDC projecting 52 million falls and $50 billion in spending annually in related healthcare costs by 2030.

To read the HMA report on the fiscal implications of the SAFE Act (HR 7618), click here.

To learn more about the SAFE Act and urge your lawmaker to co-sponsor this legislation, click here.