News Release

Contact:  Robin Maxey                        Geoff Sugerman                 May 28, 2009

            (503) 986-1605                           (503) 986-1210

robin.maxey@state.or.us         geoff.sugerman@state.or.us

Legislative Leaders Announce Plan

to Expand Access to Health Care

(SALEM) – Oregon Legislative and healthcare leaders today announced agreement on a plan to expand access to health care to an additional 60,000 uninsured adults and 80,000 uninsured children; bring more than $2 billion in federal funds into the state over the next four years; and create an estimated 3,600 new healthcare jobs.

“Expanding access to health care has never been more important in Oregon. With unemployment at record levels, more Oregonians than ever are in need the health care coverage that this agreement will provide,” said Senate President Peter Courtney. “Oregon’s hospitals, other health care providers and insurers have shown tremendous leadership in working with the legislative negotiation team to reach this landmark agreement in this time of crisis.”

Speaker Dave Hunt (D-Clackamas County) said covering Oregon’s uninsured children has long been a top priority of House and Senate leadership. Hunt and Courtney added that Governor Ted Kulongoski has also made this a key priority.

“Healthy kids become better students. Healthy parents are better parents. Covering Oregon’s  uninsured while at the same time bringing in an additional federal dollars to help stabilize our healthcare system is a huge accomplishment of this legislative session,” said Hunt. “All of the groups who worked so hard to find common ground and reach agreement on this bill have done a great service for Oregon and our future.”

Legislative leaders were joined at the State Capitol Thursday by Oregon Association of Hospitals and Health Systems Chairman of the Board Norm Gruber, president of Salem Hospital, and OAHHS President/CEO Andy Davidson. The four-member team of legislators who negotiated the agreement with healthcare leaders – House Majority Leader Mary Nolan, Representative Mitch Greenlick, Senator Alan Bates and Senator Betsy Johnson – also took part in the announcement.

“This is a landmark reform to cover all kids and many adults. It’s a key step in our efforts to , contain the rampant escalation in the cost of health care,” said Nolan (D-Portland)  “These reforms will begin to mend our broken health care system.  Kids deserve health care and parents ought to be able to take their kids to a doctor.”

Lawmakers said the long months of negotiations focused on the need to expand access for uninsured Oregonians and a fair way to bring in the funds to match with federal dollars.

“This is a good deal for Oregon, especially Oregon’s children. The dollars flowing into this state from Washington D.C. will fundamentally change the way we are able to provide health care for low-income Oregonians,” said Bates (D-Ashland). “Access costs money and this bill allows us to expand access – especially for our kids.”

“These were long and difficult negotiations, but in the end we have reached our goal – expanding access and matching those federal dollars to bring in an additional $1 billion a biennium for Oregonians,” said Greenlick (D-Portland). “This legislation has been one of my top priorities the past two years and I am delighted that we have been able to find common ground, expand coverage, improve health care, control costs and get those federal dollars back to Oregon.

The funding plan has two components: an increased hospital tax and a 1 percent tax on the commercial insurance premiums collected by health plans and insurers.

The hospital tax will fund the addition of an average of 50,000 adults to the Oregon Health Plan in the 2009-2011 biennium. In the 2011-2013 biennium that number will grow to 60,000. The new state funds will allow Oregon to drawn down additional federal funds for reimbursements to Medicaid providers, which will also increase under the funding plan.

"Oregon's hospitals are proud to have played a leadership role with our state's legislative leaders in crafting a funding model that will more than double the number of adults on the Oregon Health Plan,” Davidson said. “This collaborative agreement is a critical first step in creating the foundation for real health care reform in our state.  These are extraordinary times that require shared sacrifice." 

“This legislation is proof of what we can accomplish by working collaboratively with our partners inside and outside the building,” said Johnson (D-Scappoose). “With this bill we will be able to greatly expand access to health care across the state.”

The insurers’ tax will fund medical coverage for 80,000 additional children by the end of the 2009-2011 biennium. It will also allow the state to draw down additional federal funds for health care coverage.

Expansion of health care services in Oregon funded by the provider tax will create an estimated 2,100 jobs while the additional health care services for uninsured children funded by the insurers’ tax will create 1,500 jobs.