Oregon legislature debates House Bill 5025 budget for health authority amid funding concerns

Oregon's Joint Committee on Ways and Means has advanced House Bill 5025, which outlines a significant budget for the Oregon Health Authority (OHA). The proposed budget totals $41.7 billion, marking a 12.1% increase from the current service level, with $6.2 billion allocated from the general fund. This funding aims to enhance healthcare services across the state, particularly through the Oregon Health Plan.

Key revenue adjustments include $2.26 billion generated from provider assessments on insurers and hospitals, following the passage of House Bill 2010. This funding will help support the Oregon Health Plan, reducing reliance on the general fund by $1.53 billion. Additionally, intergovernmental transfers from the Oregon Health and Sciences University are expected to contribute $416 million, further bolstering the health plan.

Despite these increases, the budget also anticipates reductions in various areas, including a $30.7 million decrease in tobacco tax revenue and a $25 million reduction from the biannual 988 assessment revenues. Notably, the healthier Oregon program will see a net decrease in caseload costs by $447.4 million, which includes adjustments for increased enrollment and revised federal Medicaid assistance percentages.

The budget also includes a one-time reduction of $18.6 million in quality incentive payments to coordinated care organizations and a $16 million cut in inflation adjustments for the Medicaid fee-for-service program. However, it allocates $56 million to address compliance and staffing issues at state hospitals, alongside significant enhancements for mental health services and substance use disorder programs.

While the budget received support from the Human Services Subcommittee, Senator Gerard expressed strong concerns about the OHA's management and spending practices, labeling the agency as "rudderless" and in crisis. He criticized the low reimbursement rates for hospitals and providers, suggesting that the agency's expansion efforts lack efficacy.

The committee's recommendation to amend and pass House Bill 5025 reflects a commitment to improving healthcare funding in Oregon, despite ongoing debates about the effectiveness of the OHA's current strategies. As the budget moves forward, stakeholders will be watching closely to see how these funds are utilized to enhance healthcare services across the state.