Yes on BM 66 & 67

Why is CareOregon such a vocal proponent of Ballot Measures 66 & 67?

By Martin Taylor, CareOregon Public Policy Manager

The defeat of Ballot Measure 66 and Ballot Measure 67 are critical to maintaining the state's budget for health care. If they do not pass, it will trigger cuts of 12 to 15 percent from the state budget in February, including additional reductions of the Oregon Health Plan. The Division of Medical Assistance Programs (DMAP) has prepared a cut list of 15 percent. That will be the starting point for consideration by the Governor’s office and legislators if these measures fail.

The cuts in the list total $160 million. You can access the full Reduction Options Document online.This article highlights a few significant cuts included in the proposal.

• $1 million from fee-for-service Medicaid rates. Providers seeing patients who aren’t covered in a managed care plan will need to devote additional time helping patients overcome obstacles to access resulting from many fee-for-service rate reductions. Patients may find it even more challenging to find providers who will accept fee-for-service Medicaid. They may experience difficulty purchasing Durable Medical Equipment or accessing services after rates are cut for DME, targeted-case management, maternal care management, vision and medical surgical.
• $9.4 million from Medicaid Managed Care Plans’ 2010 rates, and an additional $10.5 million in the first six months of 2011. This represents an immediate cut of one-half a percentage point in addition to the 5 percent cut made during the Legislative session. That means that the state will be paying 5.5 percent less than its own actuary says is the cost to provide care. The state hopes to find some offsets by reducing some of the department’s administrative expectations of plans.
• $20 million in cuts and restrictions on pharmacy. There are six changes to the state policy and budget related to the drug benefits. Some are important common sense changes, but all will require an adjustment by providers and consumers. Many OHP stakeholders will face limits, including reduced provider autonomy and consumer choice.
• $18.5 million elimination of Graduate Medical Education payments to hospitals to train new doctors. This change will have a direct impact on the revenue for hospitals that train residents, particularly Oregon Health & Science University. There is a good chance that in the long term this action will reduce the number of Oregon residency programs and result in additional workforce pressures.
• $31 million from Medicaid benefits. If the ballot measures fail, the proposed cuts include adult dental for non-pregnant adults. Cuts will be made to other services that are considered optional under federal Medicaid regulations for non-pregnant adults currently under OHP Plus. These services include prosthetics, hearing aids, chiropractic, podiatrists and private nursing services.
• $126 million in reduced or eliminated services for the aged, blind and disabled. Changing the SSI eligibility within the Seniors and People with Disabilities program to 100 percent will eliminate dual eligibility and valuable services for the most vulnerable of our neighbors.

Please join CareOregon in protecting these vital services for our membership. If these measures fail, each of us will experience the budget crunch. But nothing we experience in lost revenue will compare to the human price paid by the vulnerable people whom we serve.

For more information or to become actively involved in the “Yes on BM 66 & 67” campaign, go to www.voteyesfororegon.org or www.chao-oregon.org/advocacy.html.

A printable copy of the informational flyer recently sent by CareOregon is available here.

You may also find helpful a report on the state's projected budget cuts in Human Services and other state agencies in The Register-Guard, and a detailed list of these cuts at oregonbudget.gov/.