The law doesn't cut Medicare benefits.
Rather, the law slows the future growth of the program by reducing payments to Medicare Advantage, a private insurance alternative to the traditional Medicare program, and ties reimbursement to performance. Additionally, the law slows future growth in payments to hospitals and other providers, according to a joint reporting project by the Washington Post and the Kaiser Family Foundation's Kaiser Health News.
The savings are used to help pay for other parts of the health law.
Up until recently, the non-partisan Congressional Budget Office estimated the law would save about $500 billion over 10 years. But in July, the CBO increased its savings estimate to more than $700 billion over 10 years.
Finally, there's an important twist buried in all the rhetoric: Ryan's budget overturns Obama's health care law, but it preserves the Medicare savings.