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Legislative Update: Health Care Reform

Oregon Business Association believes that comprehensive health care reform is necessary and desirable. Because of the reliance on federal programs, a comprehensive solution at the federal level is the preferred approach.

However, Oregon can and should take steps to increase the number of insured within the state and contain costs for Oregon residents and businesses. There are human and workforce costs to inadequate coverage that must be recognized and addressed.

HEALTH CARE REFORM - LEGISLATIVE PRIORITIES

OBA Priority I: Implement Cost Containment Initiatives

Mid-Session Report: The expansion of coverage without reducing the cost trend is unsustainable. The Oregon Health Fund Board spent well over a year studying and listening to thousands of Oregonians before formulating a plan to “bend the cost curve” on health care, and now many of the cost containment elements of that plan are contained in HB 2009.

OBA will testify in strong support of this important cost containment legislation this afternoon.

HB 2009 B – HB 2116 A
Access and cost containment must go together. For this reason, OBA supports the passage of both HB 2009B and HB 2116A.

OBA would like to recognize two of our members who served as vice-chairs of the Health Fund Board, Eileen Brady, OBA Board member and Co-owner of New Seasons Market and Jonathan Ater, OBA Health Policy Committee member and shareholder at Ater Wynne LLP.

OBA Priority II: Increase Access

Mid-Session Report: OBA supports increased access to basic health care including coverage for children and incrementally expanding the Oregon Health Plan. State funds are needed to match over a billion dollars in federal funds available for that purpose. We support the passage of legislation to leverage federal matching funds, increasing reimbursements for providers as they care for Oregon’s vulnerable citizens. We commend the leaders in the health care community for being part of the solution.

In the short term, health plans and hospitals have in essence agreed to tax themselves temporarily in order to leverage the federal funds and provide this expanded access. Long term, OBA believes that health care funding must rely on a broader source than health care taxes.

HB 2116 A – This measure creates a fund for medical assistance, which is appropriated to the Department of Human Services. It creates an assessment on insurance premiums and establishes an assessment on hospitals to generate the revenue for this fund. It also establishes the Health Care for all Children program.

HB 2116 is being heard today in the House Revenue Committee and is expected to reach the House floor in the next few days. Hospitals and Insurers have in essence negotiated a tax on their products and services to expand coverage.

OBA Priority III: Create an Oregon Health Authority

Mid-Session Report: Creation of a health authority with operational authority over state purchasing has the potential to streamline and make more efficient the existing delivery system among state agencies as well as drive cost containment initiatives.

HB 2009 – This measure abolishes the Oregon Health Fund Board and the Oregon Health Policy Commission and establishes the Oregon Health Policy Board. The Health Policy Board will oversee the functions of the Oregon Health Authority. State purchasing of health care will be consolidated, implementing common standards for contracting.

HB 2009 is being heard today in the Ways and Means Subcommittee on Human Services.