By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Debt Ceiling Negotiations on Health Care are Mere Cost Shifting
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Debt Ceiling Negotiations on Health Care are Mere Cost Shifting
Health Reform

Debt Ceiling Negotiations on Health Care are Mere Cost Shifting

DavidEWilliams
DavidEWilliams
Share
3 Min Read
SHARE

The US definitely seems to have weakened itself in the international sphere over the past decade. One could argue that the real damage to the US from the September 11 terrorist attacks was caused by the US overextending itself into Iraq and Afghanistan and getting paranoid about security and immigration on the home front. But those decisions were generally popular among Democrats and Republicans, and it’s still hard to say exactly what the right moves were.

The US definitely seems to have weakened itself in the international sphere over the past decade. One could argue that the real damage to the US from the September 11 terrorist attacks was caused by the US overextending itself into Iraq and Afghanistan and getting paranoid about security and immigration on the home front. But those decisions were generally popular among Democrats and Republicans, and it’s still hard to say exactly what the right moves were.

The current debt ceiling debate is another matter entirely. We are at serious risk of applying a self-inflicted wound that will be difficult to recover from. I remember in finance class being taught about the “risk free” rate, which was the foundation for all assumptions and calculations related to other assets and derivatives. That rate of course, was what was paid on US government securities. By even contemplating not raising the debt ceiling Congress –and the Tea Party caucus in particular– are in danger of erasing that assumption, driving up long-term borrowing costs, and undermining the role of the US dollar in the international system. Looking back a couple years from now I can’t imagine anyone in Congress who will be happy about causing that kind of damage, yet many appear to be in denial today.

There’s talk of $1.5 or $1.7 trillion in spending cuts over 10 years, of which $300 billion or so is from Medicare and Medicaid. These cuts are pretty much a yawn, since they are not about structural reform, but rather just shifting costs around. I am in favor of cost shifts to wealthy individuals in Medicare, but that doesn’t do much to address the underlying drivers of costs. And by cutting Medicaid as well as Medicare, the cuts don’t do much if anything to improve inter-generational equity.

More Read

Image
The Complicated Issue of Medical Poverty
Wait Until FY 2012 on Meaningful Use
The HMO in Your Future
Cost of Injection Jumps from $15 to $1,500
Emergency On-Call Physician Policy – A Doctor Dissents

I hope we can get through this debt ceiling crisis relatively unscathed and then move on to a real debate about health care cost control before Medicare swallows us up.


TAGGED:debt ceilingMedicaidMedicare
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

Medicare? I’m Sorry, the Doctor Won’t See You Now

August 15, 2013

Games Health Plans Play: Understanding 2015 Obamacare Premiums

June 20, 2014
ACOs in 2014
BusinessHealth ReformPolicy & Law

Studies Show ACOs Are Succeeding in 2014

August 3, 2014

No Hospital Left Behind !

August 17, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?