Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the OHA Rebalance topic
No spam. Unsubscribe anytime.
OHA reports net $141M savings in fall rebalance; lawmakers contest behavioral services and incentive cuts
Summary
Oregon Health Authority told the subcommittee its fall rebalance shows about $141 million in net general‑fund savings driven by lower caseload forecasts and FMAP increases, but several lawmakers objected to including a behavioral rehabilitative services expansion and to cutting the CCO quality incentive pool.
Rochelle Layton, OHA chief financial officer, and Dave Baden, deputy director for policy and program, told the committee that OHA’s fall 2025 rebalance reflects roughly $141,000,000 in net general‑fund savings driven largely by lower Medicaid/CHIP enrollment forecasts, modest FMAP gains and insurer assessment revenue adjustments.
"OHA's rebalance reflects net savings of approximately $141,000,000 in general funds," Layton said. OHA cited roughly $99,000,000 in Medicaid and CHIP caseload forecast savings driven by redetermination timing and end of the public‑health emergency unwinding, plus additional savings from Healthy Oregon enrollment and FMAP adjustments.
Members pressed OHA on proposed changes with programmatic impact. Senator Gelser Blueen expressed concern that the rebalance includes an expansion of behavioral rehabilitative services (BRS) funding the Legislature had previously declined, calling the decision to put it in the rebalance “inappropriate” during a period of reductions. OHA and LFO staff said some items were included because they were mandatory to comply with CMS or because federal guidance requires state plan alignment; agency staff offered to follow up with technical experts.
Lawmakers also questioned proposals to reduce the CCO quality incentive pool (QIP) as a budget lever to offset rising capitation rates; OHA staff said reducing the QIP is a statutory and administrative lever available to mitigate unsustainable rate growth but acknowledged the policy will affect downstream provider payments and quality incentives.
The Legislative Fiscal Office recommended acknowledging receipt of the OHA rebalance report and developing recommendations for the 2026 reconciliation bill; the subcommittee registered an objection for the record but carried the recommendation forward.
