Health Reform and the Massachusetts Special Election

This week, the first anniversary of President Obama’s inauguration, Washington pundits enjoy the political uncertainty created by the Massachusetts special election that will send Scott Brown to the U.S. Senate. Rarely has the election of one new member of Congress yielded such sweeping implications and revealed such shocking contrasts in the electorate.  Official Washington thrives on rumors and speculation. Everyone has an opinion, though, at this point, no one really knows what happens next. 

It is unclear what the White House and congressional leaders will do.  The next steps on health care reform will be preceded by lots of closed-door meetings and polling. Regardless of what turn this reform debate takes, several elements are not in flux.

Cost pressures – The unbridled cost escalation in U.S. health care that characterizes the status quo is not sustainable. The President must still produce the FY 2011 budget and Congress must vote again on the debt limit.

Regulation and demonstration projects – The Executive branch, including the Secretary of HHS, still retains broad administrative authorities that can be employed to continue payment reform demonstrations and regulatory actions aimed at reforming the system.

Significant political investment – The political capital invested in health care reform by leaders of the Executive and Legislative branches will not be easily abandoned.

Areas of agreement – Despite news coverage that highlights areas of division on health care reform within Congress, a portion of reform ideas still have bipartisan roots.

State budget pressures – State budget pressures will drive change in Medicaid and care delivery systems.

Health IT investment – Recent Health IT legislation has begun a $20 billion investment to encourage adoption and use of electronic medical records.

Value – Even though much uncertainty has been inserted into the debate, the efforts of health care organizations to strengthen their value proposition remain critical.

Leavitt Partners stands ready to advise clients on the opportunities created by health reform by sharing our combination of unique experiences, knowledge and relationships. Contact Leavitt Partners at 801-538-5082 for more information.