Governor Backs Off Plan To Expand Oregon Health Plan by 58,000

Oregon Gov. John Kitzhaber (D) on April 23 announced that he is "giving up" his effort to expand the Oregon Health Plan, the state's Medicaid program, to an additional 58,000 people, the AP/Seattle Post-Intelligencer reports (Beggs, AP/Seattle Post-Intelligencer, 4/24). Oregon lawmakers last summer approved a bill (HB 2519) that would expand the program by splitting it into two tiers ("Oregon Considered," Oregon Public Broadcasting, 4/23). Under the bill, OHP Plus would cover individuals categorically eligible for traditional Medicaid, and OHP Standard would cover the population of Oregonians who became eligible after the state expanded Medicaid coverage in 1994. Currently, the Oregon Health Plan allows non-Medicaid eligible individuals earning up to 100% of the federal poverty level, or $8,860 for an individual, to enroll; the new law would expand eligibility for non-Medicaid beneficiaries to 185% of the poverty level (Kaiser Daily Health Policy Report, 10/30/01). The plan also would require some beneficiaries to contribute copayments for various services, such as $2 for each generic prescription and $250 per hospital admission (Kaiser Daily Health Policy Report, 2/5). Kitzhaber, who said it is unlikely there is time before he leaves office in January for the federal government to approve the expansion and the state to implement it, said Republicans in the state Assembly are delaying the state's attempt to submit a waiver application to the federal government (AP/Seattle Post-Intelligencer, 4/24). The governor added, "I can no longer justify the significant expenditure of state resources and personnel to pursue what I believe is an effort that has lost really any viability of being implemented." But Senate President Gene Derfler (R) said that the expansion plan would "jeopardiz[e]" the program by substantially increasing its costs. He added that Kitzhaber has not been "very flexible in adjusting to what our concerns are." The Legislative Emergency Board intends to meet next week, and lawmakers might send their own version of a waiver to the federal government, Derfler said ("Oregon Considered," Oregon Public Broadcasting, 4/23).

Hospitals' Concern
Some hospitals also have expressed concern about the expansion plan, noting that they already are dealing with an "unforeseen increase" in program beneficiaries. The state estimates that the program's enrollment has exceeded expected levels by about 40,000 people, mostly because of the slowed economy (AP/Seattle Post-Intelligencer, 4/24). If the program is expanded, the hospitals worry that they would be responsible for the cost of treating even more beneficiaries. Bruce Bishop of the Oregon Association of Hospitals and Health Systems said that low-income beneficiaries will not be able to afford the proposed $250 per hospital admission copayment, adding, "That means that somebody else is going to have to pick up that cost" ("Oregon Considered," Oregon Public Broadcasting, 4/23).