Placing limits on medical spending is a hot political issue. During the battle to pass Obamacare, many in the Tea Party accused President Obama of planning to set up death panels, a charge that was not true, but an outburst that serves to remind us how contentious people are when it comes to rationing health care.
Severe cuts to medical spending aren't likely to happen any time soon. In fact, much of Massachusetts' economy is so dependent on the health care sector that any reduction in spending would likely harm the state.
Budget watchers expect some sort of austerity measure to pass Congress sometime after the election during the lame duck session. Any serious budget cuts will include government funded health care, which would affect health care providers which rely on the government for a large segment of their income.