Election Results in Status Quo: Health Care Challenges Loom Large

Election Results in Status Quo: Health Care Challenges Loom Large

NAAOP

11/7/2012

The hotly contested 2012 election consumed the nation's attention and
resulted in unprecedented political spending over the past year but resulted
in very little change in the power structure in Washington. President Obama
won reelection, the Senate remained in the control of the Democrats and the
House remained in the control of the Republicans.

President: After billions spent in this election cycle, including through
Super PACs, only two states, Indiana and North Carolina, which President
Obama won in 2008, moved into Governor Romney's column since the last
Presidential election. The President won at least seven of nine battleground
states, including Ohio, Virginia, Colorado, Iowa, Nevada, New Hampshire, and
Wisconsin. The President won 303 electoral votes to Governor Romney's 206,
with Florida still too close to call. The popular vote totaled 58,933,000
votes for the President, or 50%, while Governor Romney received 56,548,000
votes, or 48%.

Senate: With some Senate races still too close to call, Republicans are
poised to pick up at least three Senate seats from Democrats, but Democrats
are also poised to pick up at least three seats from Republicans, keeping
the Senate totals largely intact. A notable loss for the O&P community is
the Senate race in Nebraska, where former Senator and Governor Bob Kerrey, a
Democrat, Vietnam veteran and lower limb amputee, was not able to overcome
his Republican opponent, Deb Fischer. Bob Kerrey was a proven champion for
the O&P community when he last served in the Senate ten years ago.

House: Republicans held control of the House of Representatives, with
Democrats likely picking up no more than eight House seats. A number of
House races are still too close to call but those races appear to be leaning
Republican. The current Republican majority is 25 seats, so Democrats will
not materially increase their power in the House. Notable races include a
win in Illinois by Tammy Duckworth, a former Iraq veteran and high profile
amputee, and a loss in New York State by Rep. Ann Marie Buerkle (R), current
Chair of the House VA Health Subcommittee, which has held two hearings in
the past six months on VA prosthetics. Chairman Buerkle has been a true
leader on this issue. How this impacts the O&P profession's VA agenda will
become clear in the weeks to come.

Health Care: The results of this election will impact health care in two
major ways: On reform of Medicare and Medicaid, momentum will be curtailed
to turn Medicare into a voucher program and block grant Medicaid. However,
these entitlement programs will continue to be at risk of additional
spending cuts in the context of solving the fiscal cliff and the $700
billion in cuts already in law will not be repealed, as Governor Romney
promised in recent months. The Affordable Care Act, or Obamacare, will be
implemented rather than being repealed, but implementation of the state
insurance exchanges and federal subsidies to purchase insurance may be
delayed as Congress debates ways to trim federal spending in the coming
months. In addition, a flurry of federal regulations impacting O&P,
including essential health benefits and the medical device tax, are expected
to be released in the coming days.



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