2008-11-07

The recent elections have established Democratic majorities in both houses of Congress and brought the issue of comprehensive health-care reform to the forefront of next year’s political agenda. Senator Ted Kennedy (D-MA) is thought to be the likely leader of reform efforts in Congress, and he has been reported to be working with various stakeholders, including the campaign of President-Elect Obama, from his bedside while being treated for cancer.

Plans for comprehensive reform are likely to run up against two major challenges: financing and partisan differences. With the deficit likely to rise into the trillions over the coming year, it will be impossible to finance wide-ranging and expensive reforms. Further, it is possible that the incoming Administration and Congress will choose to take more limited action where it has bipartisan support, such as expanding the State Children’s Health Insurance Program (SCHIP) and a few additional programs, rather than attempt wholesale reform.