Lawmakers urged to protect Oregon Health Plan against threat of federal funding cuts

PORTLAND, Ore. (KOIN) – Local hospitals are calling upon lawmakers to protect access to the Oregon Health Plan as the state healthcare system faces a potential $2 billion funding shortfall this year.

The Hospital Association of Oregon, which represents more than 60 hospitals throughout the state, is urging lawmakers to pass a bill that the nonprofit says would protect healthcare for 1.4 million patients in Oregon.

The fate of HB 2010-A will first come down to the Oregon House Revenue Committee. If passed, it will move through the rest of the state legislature.

“Passage of HB 2010-A supports continued health care access for Oregon families, children, seniors, and rural communities while also preventing further stress on our financially fragile hospitals,” CEO Becky Hultberg said

According to the HAO, the state is currently experiencing its highest insurance rate in history at 97% — including one in three Oregonians and 57% of the state’s children. 

However, as the possibility that Medicaid could receive less funding under the Trump Administration, this rate could drop significantly.

“As we continue to monitor potential federal policy changes that could impact Medicaid programs nationwide, our top priority must be supporting and stabilizing the health care system and the programs that we have today,” Hultberg said.

HAO says hospital payroll costs have risen 43% since 2020 as hospitals hire more staff to meet patient needs. But without support from Medicaid, emergency services, labor and delivery units, behavioral health care, and specialty services like oncology could be at stake.