Medicare spending will not have to be cut this year, the Centers for Medicare and Medicaid (CMS) has announced.

In a memo to CMS’ Acting Administrator Marilyn Tavenner, the agency’s Acting Chief Actuary Paul Spitalnic said that projections for Medicare’s per capita growth rate were within targeted spending rates laid out in President Obama’s health care reforms.

The memo comes as a relief to providers. Under the so-called Obamacare laws, if projections outreach spending targets, the newly created Independent Payment Advisory Board will have to find ways to cut Medicare spending.

Spitalnic’s memo suggests that the ax can be sheathed for a little while yet.

“The projected five-year average growth in Medicare per capita spending is 1.15 percent, and the five-year average growth target is 3.03 percent,” the memo states.

“Because the projected five-year Medicare per capita growth rate does not exceed the Medicare per capita target growth rate, there is no applicable savings target for implementation year 2015 (determination year 2013).”

American Health Care Association President & Chief Executive Officer Gov. Mark Parkinson immediately jumped on the news and sent out his own message to members.

“I thought you all would appreciate that good piece of news for our sector,” he wrote.