US-POLITICS: Mid-Term Election Impact and Brief Analysis

NAAOP

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Title:

US-POLITICS: Mid-Term Election Impact and Brief Analysis

Creator:

NAAOP

Date:

11/9/2006

Text:

Mid-Term Election Impact and Brief Analysis

Democrats scored major victories in the election, becoming the
majority party in the U.S. House of Representatives, achieving a majority of
state governorships, and taking control of the U.S. Senate by a one vote
margin. The results were largely consistent with most polling and political
prognostications prior to the election, but the margins that Democrats
achieved were generally larger than anticipated. Most analysts attributed
the extensive Republican losses to the Iraq war, the unpopularity of
President Bush, the economy, and a series of scandals that plagued the
majority party. Following the election results, Defense Secretary Donald
Rumsfeld resigned.

Impact on Policy: This sets that stage for a major shift in federal policy
that could have a dramatic effect on health and human services, education,
disability policy and policies that impact orthotics and prosthetics. Of
particular interest to health care providers awaiting action on Medicare
issues and funding levels for FY 2007, the change in leadership probably
means that Congress' lame duck session scheduled to begin November 13th will
not be particularly fruitful. For the field of O&P, this means the
likelihood of receiving a 4.3% Medicare fee schedule update on January 1st
is very high.

House: In the House, at the time of this writing, the Democrats
hold 230 seats and the Republicans hold 196, with 9 races throughout the
country being too close to call. The margin to control the House is 218
seats. There is a real chance that Republicans may be shut out from taking
any seats taken from Democrats, which would be the first time in history
that this has occurred. But even if the Republican candidate in all 9 of
these undecided races wins, the Democrats will still control the House.
This means that a new Speaker of the House will be elected and all of the
committees will change leadership. This also means that the agenda and the
rules for debate in the House will no longer be run by Republicans, the
party of President Bush.

Big winners in the House include Congresswoman Nancy Pelosi (D-CA),
who is in line to become the first female Speaker of the House and highest
elected female official in U.S. history. A long list of relatively unknown
Democrats who toppled often well known Republicans follow, many of whom are
either moderate or even conservative in their political outlook. Major
figures who lost their reelection bids include Nancy Johnson (R-CN),
Chairman of the House Ways and Means Health Subcommittee, Clay Shaw (R-FL),
senior member of the Ways and Means full Committee and potentially the next
chairman if House Republicans maintained their majority, and Speaker
Hastert, who won reelection but announced that he will not seek the House
Republican leadership post.

Senate: The Senate was less likely than the House to turn from
Republican to Democratic control. In the Senate, Democrats have picked up
six seats and now hold a 51 to 49 majority. The Democrats not only picked
up six Republican seats but also held onto all of the Democratic seats
including Maryland and New Jersey. With Democrats having taken the
majority, they will be rewarded with controlling the agenda, chairing all
committees and electing a new Majority Leader. Senator Harry Reid of Nevada,
the present Senate Minority Leader, is expected to be elected Senate
Majority Leader.

Political Analysis: In political terms, this election is a major
shift in power in Washington and is being interpreted as a strong rebuke of
President Bush and his leadership. Especially if the Democrats take the
Senate, this election will have a major impact on the lame duck session of
the 109th Congress, the last two years of the Bush Presidency, and perhaps
the political dynamic in Washington.

Lame Duck Session: The lame duck session is likely to be shortened
dramatically from what might have occurred if Republicans kept both Houses
of Congress. If Republicans had won Congress, they would have returned on
November 13th and continued to negotiate spending levels for fiscal year
2007, Medicare fixes such as physician payments and an extension of the
therapy caps, and perhaps other legislation that is largely completed but
has not received final approval before being sent to the President for
signature. The likelihood now, in light of the Democratic gains, is a short
lame duck session, pushing everything that can be postponed into next year
for Democrats to address. Spending levels for federal programs will likely
be addressed by passing a continuing resolution through some point next year
(e.g., March 2007) at FY 2006 spending levels. This would be a major
disappointment for anyone with provisions pending in this Congress as action
on these provisions may not occur until well into next year. It is
important to note, however, that this is informed speculation, and the
incoming leadership may choose a different path in the coming days and
weeks.

The 110th Congress: Because of the change in leadership, the 110th
Congress will start with new leadership elections, selection of committee
assignments and other organizing activities. The Democratic agenda is
expected to focus on raising the minimum wage, increasing spending for
homeland security and education, and promoting alternative fuels with less
reliance on foreign oil. In addition, the House is widely expected to
exercise greater oversight authority by probing Iraq reconstruction spending
and other issues. Another key goal will be to authorize the federal
government to negotiate pricing with prescription drug companies, thereby
reducing the costs of the Medicare Part D program and perhaps allowing those
savings to reduce the size of the gap in coverage under the existing
program. A key challenge will be entitlement spending (i.e., Medicare,
Medicaid and Social Security), as 2007 offers a window of opportunity in
which to potentially accomplish an entitlement reform bill prior to the
Presidential election year, when such a bill would be unlikely to pass.

Bipartisanship: Although too early to tell, the election results
may trigger a new sense of bipartisanship in Washington, as the White House
and the Democrats in Congress will have to work more cooperatively in order
to accomplish any major legislation. Although Democrats have a fairly
comfortable lead in the House and a razor thin margin in the Senate, they
will need moderate Republican votes to move most legislation and President
Bush still holds the veto pen, which will not be easily overridden in
Congress as the House and Senate margins currently stand.


                          

Citation

NAAOP, “US-POLITICS: Mid-Term Election Impact and Brief Analysis,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 2, 2024, https://library.drfop.org/items/show/227651.