House Republicans announced funding for the program would come from existing unassigned capital, an expansion of the hospital assessment, a nominal tax on e-cigarettes used in mental health settings and a small increase in sin tax on cigarettes, according to the report.
Due largely to diminishing federal funds, Oregon projects a $1.4 billion dollar budget shortfall for the next biennium. One solution is the controversial idea to end coverage to the expanded Medicaid population, which would impact over 400,000 individuals. However, lawmakers are working to include enough funding for the Oregon Health Authority to continue current levels of service for the next year.
Under the new Republican plan, the hospital assessment would rise 0.7 percent and smaller hospitals would be held accountable as well, according to Rep. Knute Buehler. Additional funds would come from the $30 million to $40 million remaining in the Health Insurance Exchange Fund and a $50 million surplus from the Oregon Reinsurance Program.
Republican lawmakers say this plan would allow time to verify eligibility of the Medicaid expansion population and gain insight into the true budgetary needs of OHA, according to the report.
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