Democratsโ Prepare to Draw Line on Health Care Spending as Shutdown Looms
WASHINGTON – As the October 1st deadline for a government shutdown rapidly approaches, Democrats are signaling a willingness โฃto fiercely defend health care spending, setting up a potentially high-stakesโค confrontation wiht Republicans who control Congress. The looming budget battle centers on federal outlays, โwith health care already โconsumingโ a significant portion – 27% โof all โfederal funds in fiscal year 2024, according to the Kaiser Family Foundation (KFF).
The Democratic stance comesโข amid growingโ scrutiny of the efficiency of U.S.โ health spending, which some experts argue doesn’t translate to improved health outcomes.โฃ Michael Cannon, a healthโ policy expert, highlightedโค this point, stating, “We have the most โexpensive health sectorโ in the worldโฆ Maybe theโข most inefficient one. Some people say. There’s more disagreement about that. but there’s a lot of evidence โthat when you reduce spending in the Unitedโฃ States,it doesn’t affect health outcomes much.” Cannon detailed his research, citing โขmultiple randomized, controlledโข trials examining subsidized medical care that have failed to demonstrate corresponding health improvements, in both a Wall Street Journal op-ed andโ a Substack entry.
However, Cannon alsoโฃ contends that theโฃ high cost is driven by โฃindustry influence. โ”The industry has captured the policymaking process,” he said. “The industry has capturedโ the debate over health careโค and health spending.”
While a government shutdown is a serious prospect, Cannon downplayed itsโฃ potential impact, suggesting,โ “They just close the Washington monument for a few โdays, and then somebody caves, and they โขreinstate all the spending that was going to be thereโฆ So,โ there’s reallyโฆ not much downside to a shutdown. but there’s a huge downside to increasing government spending onโ health care.”
The political calculus โฃfor Democrats is complex. Casey Burgat,Legislative Affairs Programme Director at George Washington University,described the situation as a “literal trillion-dollar question,” noting that shutdowns harmโ everyone,but the key is “politically,who do they โคhurt more?”
Burgat explained that Democratic voters are motivated to see their representativesโ resistโข the agenda โคof President donald Trump. with over two weeks remaining before theโ deadline, public posturing carriesโ limited risk for Democrats. Though, the dynamic shifts as the โdeadline nears.
“Maybeโค they’reโค making the calculationโ that it forces Republicans to theโฃ table on at least some of their priorities,” Burgat said. He alsoโ suggested Democrats could potentially deflect โblame for a shutdown, given Republican control of both Congress and the White House. “I think the easier case to make for the publicโฆ is they know who’s in the White house. And thenโ ifโฃ they’re payingโข even a little bit more attention,they know whoโ has โcongressional majority.” Despite this potential advantage,โข Burgat acknowledged a shutdownโ would be damaging for both parties, calling itโข “a pox on both our houses.”