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Critical Health Issues for States
A Reforming Governor's Perspective

Featured Article

National Conference of State Legislatures. Governor's Goal: Extending the Reach of the Oregon Health Plan. State Health Notes. National Conference of State Legislatures. 2001 October 22; 22(358): 1, 5-6.
In February 1994, Oregon enacted the Oregon Health Plan (OHP) and extended Medicaid eligibility to all residents with incomes below 170 percent of the federal poverty level. The state fought for and won federal approval to prioritize the medical services covered under Medicaid. The OHP directed the subsequent savings to pay for care of low-income uninsured residents. Now, Oregon is moving forward with more reforms that will expand Medicaid eligibility to 185 percent of the federal poverty level, which will cover 50,000 more uninsured residents. Under a new law passed in August, the OHP will be divided into two parts: OHP-Plus for categorical Medicaid beneficiaries and OHP-Standard for those people who have gained coverage under the OHP waivers. In addition, the state will seek federal matching funds for the Family Health Insurance Assistance Program (FHIAP), which currently uses state funds to help cover working poor residents and their families. These reforms will require Oregon to obtain another federal waiver. OHP-Standard's benefits are less generous than the Plus program, so Oregon must devise cost-sharing strategies and assemble a new prioritized list of benefits to enable maximum coverage for the maximum number of beneficiaries. Critics of the new reforms point out that the OHP has been driving providers away, leaving few to absorb the losses. Moreover, Oregon is facing a fiscal crisis because general fund revenues are $300 million less than expected.

Other Articles

Eggen D, Connolly C. Ashcroft Ruling Blocks Ore. Assisted-Suicide Law. The Washington Post. 2001 November 7: A1.
This news report details U.S. Attorney General John Ashcroft's enactment of a new drug-enforcement policy that blocks Oregon's assisted-suicide law.

Green, AS. State Challenges Ashcroft. Portland Oregonian. 2001 November 8.
This article recounts Oregon Attorney General Hardy Myers' move to prevent the federal government from stopping the state's physician-assisted suicide law.

Kitzhaber J. Resuscitating the Oregon Health Plan. Speech given at the Foundation for Medical Excellence. 2000 February 25. Available at www.governor.state.or.us.
Governor Kitzhaber's speech at the Foundation for Medical Excellence looks back at the Oregon Health plan after 10 years of innovation and controversy. Kitzhaber explains Oregon's original goals of explicitly prioritizing health care benefits in order to increase legislative accountability and independence from federal regulations. Kitzhaber details the problems encountered with the traditional market competition model, which have pushed risk towards large providers in poor areas. He also remarks upon the difficulties his state has had with the Centers for Medicare and Medicaid Services. Governor Kitzhaber proposes several measures to solve this program from within Oregon's communities and by challenging federal Medicaid policy.

State of Oregon, Governor's Office. The Oregon Health Plan. Governor's Home Page. November 11, 2001. Available at www.governor.state.or.us.
This summary of the Oregon Health Plan provides a general description and brief outline of its conception by then-Senate President John Kitzhaber, the government programs included in the Plan, and its results.

State of Oregon, Governor's Office. Health, Human Services and Labor Newsletter. Summer 2001. Available at www.governor.state.or.us.
This newsletter details the successes in health and human services of the 71st session of Oregon's Legislative Assembly. The legislature established the Oregon Formulary as a means to reduce soaring prescription drug costs. Also passed, the Oregon Health Plan waiver directs the Department of Human Services to submit a waiver to the federal government to establish a new Oregon Health Plan benefit package for certain eligible clients up to 185 percent of the Federal Poverty Level.

For Further Reference

State of Oregon, Governor's Office. Governor Announces Prescription Drug Plan Endorsements. Oregon Governor's Office Press Releases. April 25, 2001. Available at www.governor.state.or.us.

State of Oregon, Governor's Office. Governor Signs Practitioner-Managed Prescription Drug Plan and Oregon Health Plan Waiver Legislation. Oregon Governor's Office Press Releases. August 2, 2001. Available at www.governor.state.or.us.

State of Oregon, Department of Justice. Attorney General Hardy Myers to Take Legal Action to Protect Oregon's Physician-Assisted Suicide Law. State of Oregon, Department of Justice Press Release. November 6, 2001. Available at www.doj.state.or.us.

United States House of Representatives. Oregon Governor John Kitzhaber, M.D. speaking on H.R. 4006 to the Committee on the Judiciary. July 14, 1998. Available at www.house.gov/judiciary/222479.htm.

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