Forbes January 23, 2025
Want to win votes from members of Congress to pass a health law? Add government spending programs that benefit hospitals represented by those members. Want to extend the windfall for those hospitals? Increase campaign contributions to their representatives in Congress. A new study by Yale professor Zack Cooper and his coauthors reveals the intriguing interplay between politics and federal healthcare spending.
Published in the Journal of Health Economics, the study found that: (1) hospitals represented by members of Congress who voted “yea” on the 2003 Medicare Modernization Act were more likely to receive Medicare payment increases (the Section 508 program); (2) this program was designed to be manipulatable for political benefit; and (3) campaign contributions from individuals affiliated with these...