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Back in February I mentioned that two additional states (Rhode Island and Delaware) had adopted the Massachusetts model of setting a statewide health care cost growth target: Third state adopts health care cost growth target
Now Oregon makes it four: Oregon lawmakers seek to slow rising health care costs
It's sweeping the nation.
Now Oregon makes it four: Oregon lawmakers seek to slow rising health care costs
SALEM, Ore. - With the passage of Senate Bill 889, Oregon becomes the fourth state to set a spending benchmark to rein in the rising costs of health care.
Modeled after a program in Massachusetts, SB 889 creates the Oregon Health Care Cost Growth Benchmark Program, which will set a state spending growth target that all insurance companies, hospitals and health care providers would have to stay within.
"Health care costs keep growing at a level that’s not sustainable for family budgets, businesses, or the state budget," said Jeremy Vandehey, director of Health Policy and Analytics at the Oregon Health Authority. "In Massachusetts, this policy saved $5.5 billion for consumers between 2013 and 2016. That’s the kind of savings we want to bring to Oregon families and businesses."
SB 889 establishes a citizen- and stakeholder-led Implementation Committee selected by Governor Brown and under the supervision of the Oregon Health Policy Board. It will determine the details of the program, including establishing what the benchmark should be and how the measurement of the total cost of care should be designed.
The committee will also provide recommendations on how entities with unreasonable cost increases will be held accountable. These accountability measures will have to be adopted by the 2021 Legislature.
It's sweeping the nation.