Congress and President Obama battled right down to the wire of the deadline (Thursday, October 17, 2013) over a bipartisan agreement on raising the federal debt ceiling. The government has been shut down since October 1st by Republicans in the U.S. House of Representatives in efforts to “defund” the Affordable Care Act (ACA, popularly known as Obamacare). As of 1:00 pm Eastern Wednesday, major media are reporting Senate reached a bipartisan deal. The White House Press Secretary says President Obama believes the budget deal "achieves what's necessary." CBSNews.com says Senate is expected to vote on the deal and send to the House Wednesday night but "prospects for passage in the House are not assured."
(Photo, inset right) BIPARTISAN DEAL ONLY A TEMPORARY SOLUTION: Medicare, Medicaid & hospitals could be affected in early 2014 when bipartisan deal runs out. Photo: Michael Elliot/FreeDigitalPhotos.net
The UMHS Pulse looks at what the consequences of failing to raise the debt ceiling now or in the future will have for health care.
NBCNews.com says the bipartisan deal will "reopen the government through mid-January and extend the government’s ability to borrow through early February." However, health care and other areas that receive federal funding could be in jeopardy again in a few months.
Effects on Medicare, Medicaid & Hospitals
For health care, Medicare and Medicaid beneficiaries and “the hospitals that care for them” would be hit hardest, according to Advisory.com.
“While some government vendors could withstand delayed payments, others—including individuals receiving veterans benefits and hospitals treating Medicare patients—could not,” Advisory.com says. “Medicare and Medicaid payments under the programs have continued under the government shutdown, but running low on cash will mean trouble for Medicare and Medicaid recipients that rely on the entitlement programs.”
Effects on Health-Related Government Agencies
Federal agencies that deal with health care and heath services have been hit hard by the shutdown. U.S. News and World Report reported on the main agencies affected in an article published on September 30, 2013, one day before the government closed.
The newsmagazine says the U.S. Department of Health and Human Services furloughed 52% of its employees, and a “lack of appropriations” limits the Centers for Disease Control and Prevention’s ability to “respond to outbreak investigations.” National Institutes of Health employees continue to “treat current Clinical Center patients and provide animal care services.” New patients are locked out of clinical research.
Regarding Medicare/Veterans Affairs Care, the newsmagazine says, “Much like Social Security, funding for Medicare and Veterans Affairs are mandatory and are not subjected to congressional appropriation. However, employees responsible for processing applications are not expected in a shutdown. The Department of Health and Human Services estimated 62 percent of its 76,000 employees would have stopped working by the second day of a shutdown in April 2011.”
Fundamentals of the Federal Debt Ceiling
Advisory.com explains the debt limit is “the total amount of money the United States can borrow to pay its obligations, including interest on Medicare and Medicaid. It is set by Congress and currently totals $16.699 trillion.”
The website explains that U.S. Treasury Department officials say “the government will reach its limit and lack the cash to pay its bills sometime after Oct. 17, when it is expected to have just $30 billion on hand, which is not enough to cover the $60 billion typically spent per day.”
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Scott is Director of Digital Content & Alumni Communications Liaison at UMHS and editor of the UMHS Endeavour blog. When he's not writing about UMHS students, faculty, events, public health, alumni and UMHS research, he writes and edits Broadway theater reviews for a website he publishes in New York City, StageZine.com.
