The agreement was reached between the Oregon Hospital Association and state lawmakers. Under the agreement, larger Oregon hospitals will see their income tax rate increase from 4.3 percent to 5 percent, while rural Oregon hospitals will have a first-time income tax rate of 4 percent, Saint Alphonsus Medical Center-Ontario (Ore.) President Ken Hart told the Argus Observer.
The taxes will provide support for the state’s Medicaid program. When the state expanded Medicaid, about 400,000 more people enrolled than planned, contributing to a budget shortfall in Oregon, Mr. Hart said in the report. The taxes are meant to help provide these Medicaid beneficiaries with coverage.
Additionally, coordinated care organizations in Oregon, which serve the state’s Medicaid population, will be taxed, and a tax on health insurance premiums will affect payers, Mr. Hart said in the report.
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