This article celebrates a potential huge win for kids, families and advocates in Oregon. Legislators made progress toward passage on a bill that expands coverage in Oregon to an additional 80,000 kids. In these tough budget times, this is a big bright spot for kids and families in Oregon. Our team in Oregon has been working hard to keep children’s health front and center and it shows with quotations from legislators and Gov. Kulongoski about the importance of healthy kids and the increased federal investment for Oregon.
The Salem Statesman Journal (OR) - Plan expands health-insurance coverage; Agreement: Hospital and insurer taxes will pay for the growth - By Peter Wong – 5.29.09
A Salem pediatrician and Salem Hospital's chief executive praised Thursday's legislative agreement on hospital and insurer taxes that will extend health-insurance coverage for 80,000 more children and at least 25,000 more adults.
But representatives of two statewide business groups opposed the agreement, which has the endorsement of hospitals and another business group in the form of House Bill 2116.
The agreement calls for a 1 percent tax on commercial health-insurance premiums — and the equivalent on the Public Employees Benefits Board, which oversees health insurance for state employees and is about to move to self-insurance — and a hospital assessment to recoup more federal Medicaid funds.
The exact rate on hospitals would be set by the Department of Human Services and would float. The current hospital tax is 0.63 percent on net patient income. The estimated assessment will be much higher, but hospitals would offset their tax payments through higher state reimbursements from Medicaid.
Dr. Jim Lace, a Salem pediatrician, has been a vocal advocate of expanding care to all children.
"Our goal is to make sure that every child that has coverage has access to some system," he told the House Revenue Committee in supporting the agreement.
As chief executive of Salem Hospital and board chairman of the Association of Oregon Hospitals and Health Systems, Norm Gruber raised concerns about how Gov. Ted Kulongoski's original proposal affected Oregon's 26 largest hospitals. But he said he is satisfied with the legislative agreement, which will result in hospitals recouping what they pay out.
Oregon stands to recoup almost $1 billion in federal Medicaid funds in the next two years by raising $300 million to $400 million from the new taxes and assessments, said Dr. Bruce Goldberg, the DHS director. An additional $1.2 billion would follow in the 2011-13 budget cycle, matched with about $500 million from the state sources.
Kulongoski, who also sought expanded coverage for children in 2007, praised the negotiated agreement.
"The federal government has an offer on the table, with a use-it-or-lose-it provision for additional funds for children's health care unless Oregon comes up with its share," he said in a statement. "Doing nothing is not an option."
Kulongoski and legislative leaders have sought to expand health care coverage in the face of a severe economic downturn. Kulongoski originally proposed a 4 percent tax on hospitals and 1 percent tax on insurers.
Oregon has more than 600,000 people without health-insurance coverage.
"Healthy kids become better students. Healthy parents are better parents," said House Speaker Dave Hunt, D-Gladstone.