No.351
November 2009
Senior Associate Munehiko Eto
From the presidential primary elections to the present, healthcare reform has been the central US policy issue after the “financial and economic crisis” and the “Iraq War and war on terrorism.”
The US is confronted by surging healthcare costs, widening healthcare disparity, and inefficient healthcare systems. While the Republican and Democratic parties agree that healthcare reform is necessary to solve these problems, they are worlds apart on methods for this reform.
Unlike the Clinton Administration, the Obama Administration offers basic principles and has left the substantive drafting of the bill and drumming up of support to Congress, a strategy that emphasizes consensus building with Congress and citizens.
The Republican Party has consistently opposed greater government involvement and increased federal spending. As Congressional deliberation produces more details of the bill such as creation of a public option, early realization of universal healthcare, increased government expenditure, and mandatory participation in healthcare insurance by individuals, opinion has become divided even within the Democratic Party. Further amendment and unified efforts are necessary before submitting the bill to the full House and Senate, and the long path towards enactment will likely see considerable revision and compromise.
While the bill is likely to pass in some form, the prospects of it becoming a comprehensive healthcare reform are low. Predicting the success or failure of the enacted bill should be done from the perspective of the Five Cs (Coverage, Cost Control, Cost Sharing, Coordinated Care, Choice).
This paper is based on information and material current as of October 12, 2009.