It may be the beginning of the unraveling of Obama’s plan to change the medical and health care system in the United States. The Senate just agreed (unanimously) to rescind a 22% pay cut for doctors treating people with Medicare, to restore Medicare payments with a 2.2% increase, and to delay any other cuts for six months. So, we’re not cutting costs on a program anymore, we actually increased the cost? It’s complicated. But the bottom line is that the Senate is pushing for something to make them look good in front of seniors and the doctors, but at the same time they don’t want to set anything up long-term (because that would mean that they are adding billions of dollars to the federal deficit, and there’s no way anybody wants to be held responsible for that going into the Fall elections… hence the unanimous vote. At least they can all agree on something- that they all want to get re-elected.

"The doctors will be paid. Seniors will get the benefits they deserve," said Senate Finance Committee Chairman Max Baucus.

There are 3 major political implications I see from this move:

1. Medicare is Virtually Untouchable.

Let’s face it: there are a lot of people on Medicare, and there will only be more in the coming decades. Part of the reason Obama has been pushing his revamp of the health care system is because he knows this, knows that Medicare is not a sustainable health care system for the numbers that will be depending on it in the coming years, and wanted to make a more sustainable system based on paying for preventative care options, etc. But it’s almost politically blasphemous to cut anything in Medicare or to make the point that there should be changes in the way that it is financially handled. If it’s not the death panel accusations for the new plan, it’s the accusation that you are taking benefits away from old people.

1. The Senate Can Change Their Minds.

For all the debate and hoo-hah that goes on before something is passed, it seems like changing things that are already in existence one piece at a time is not an issue for the Senate- it seems like their idea of legislating is to hem and haw over gigantic bills and then tweak them later, piece by piece, and call it effective, even the right thing to do. Thanks for letting us know, Mr. Baucus, that the elderly deserve benefits. No debate there.

1. Lobbyists Can Make a Difference.

Who knows what really goes on behind the scenes unless you are there, right? But I can’t help but believe that the lobbyists for the doctors and the elderly are making this happen in a big way. Not that they shouldn’t, but Obama’s health care reforms are up against a lot- they are up against a lot of history of benefits and a lot of history of doctors getting paid X amount- and if you think either of those are going down anytime soon, this is an example of just how off-target that thought is.

Photo Credit: Waldo Jaquith