Annals of Long Term Care

A changing political and economic landscape could present President-Elect Barack Obama with obstacles and opportunities to effect healthcare reforms, pundits began predicting just hours after his historic victory. Democrats solidified their majorities in both the Senate and House in the November 4 election, better positioning the Obama Administration. But how the new balance of power in Washington, coming amidst global economic turmoil—a floundering world economy, a record federal deficit, a $700 billion Wall Street bailout, and the likely need for further bailouts and stimulus efforts—will affect the particulars of healthcare reform remains to be seen.
According to some, the Obama Administration will have to limit or postpone any big new spending programs—such as those to expand healthcare—given fiscal uncertainties.

According to others, including Rep. Rahm Emanuel (D-IL), who will serve as the new president’s Chief of Staff, the economic crisis will create opportunities for reform. “No crisis should go to waste,” he has said.

Shortly after the election, PriceWaterhouseCoopers estimated that the healthcare reforms the President-Elect outlined on the campaign trail (see “2008 Presidential Candidates Propose Differing Plans for U.S. Healthcare System” in the October issue of Annals of Long-Term Care for an overview of Mr. Obama’s healthcare reform proposal) would total roughly $75 million the first year. The reforms would, however, cover 95% of Americans, the firm’s analysis notes. Roughly 15% of Americans now lack health coverage.

According to a PriceWaterhouseCoopers analyst, the current economic crisis could “unleash more market forces to drive the (healthcare) system toward more value,” trimming waste and ushering in more cost-effective, and effective, system. For these and other reasons, say advocates of speedy reform, tackling healthcare sooner rather than later could strengthen the economy and aid recovery.

Sen. Max Baucus (D-MT), chairman of the Senate Finance Committee, is among those sharing this view. Giving a boost to reform efforts in mid-November—shortly before this issue of Annals of Long-Term Care went to press—he released a comprehensive plan aimed at providing quality, cost-effective care for all Americans. He also urged President-Elect Obama to effect reform within his first six months in office.

The American Geriatrics Society (AGS) applauds the Senator’s efforts to encourage timely reform aimed at ensuring all Americans, regardless of age, access to high-quality, affordable care. AGS also strongly supports many of the recommendations in the 89-page plan.

“We are heartened by Sen. Baucus’ proposal, his dedication to ensure that healthcare reform is swift and comprehensive and benefits the young and old alike, and his willingness to work in a bipartisan manner to effect needed reforms,” said AGS President John B. Murphy, professor of medicine and family medicine at Brown University’s Warren Alpert Medical School and Chief Physician Officer at Rhode Island Hospital. “Sen. Baucus’ call for universal access to affordable, quality health coverage and expansion of care to enhance the prevention and treatment of chronic diseases will improve the quality of life for millions of Americans of all ages, especially our most vulnerable older adults.”

Sen. Baucus has said he is committed to working with Mr. Obama and other lawmakers on healthcare reform. “Much of what’s here dovetails with the President-Elect’s own health plan,” he told The Washington Post. “And where we differ, I have committed to work with him to find a consensus.” President-Elect Obama, who praised Sen. Baucus’ efforts, likewise signaled his desire to work closely with the Senator and other legislators “to make quality, affordable healthcare a reality for all Americans.”

In many ways, Sen. Baucus’ plan parallels the President-Elect’s campaign proposals for overhauling healthcare. But there are differences.