- Oregon provides Medicaid/CHIP coverage to more than 1 million state residents.
- Oregon Medicaid is a longstanding national leader in making health insurance available to residents via its Medicaid program.
- Oregon Medicaid implemented several temporary policy changes in response to the COVID-19 pandemic.
ACA’s Medicaid eligibility expansion in Oregon
Oregon was far ahead of the pack on Medicaid expansion and reform. The state expanded Medicaid (Oregon Health Plan) to cover people with incomes up to 100 percent of poverty in 1994. Budget woes resulted in benefits being scaled back over the years and enrollment was suspended from 2004 to 2008.
Federal poverty level calculator
of Federal Poverty Level
Who is eligible for Medicaid in Oregon?
- Adults with household incomes up to 138 percent of poverty.
- Pregnant women and infants with household incomes up to 185 percent of poverty.
- Children under age 19 with household incomes up to 305 percent of poverty, regardless of immigration status.
- The Oregon Breast and Cervical Cancer program is available to women with household income up to 250 percent of federal poverty level and who are less than 65 years old.
Oregon has accepted federal Medicaid expansion
- 1,344,876 – Number of Oregonians covered by Medicaid/CHIP as of November 2021
- 718,520 – Increase in the number of Oregonians covered by Medicaid/CHIP fall 2013 to November 2021
- 58% – Reduction in the uninsured rate from 2010 to 2019
- 91% – Increase in total Medicaid/CHIP enrollment in Oregon since Medicaid expansion took effect
How does Medicaid provide financial assistance to Medicare beneficiaries in Oregon?
Many Medicare beneficiaries receive Medicaid’s help with paying for Medicare premiums, affording prescription drug costs, and covering expenses not reimbursed by Medicare – such as long-term care.
Our guide to financial assistance for Medicare enrollees in Oregon includes overviews of these benefits, including Medicare Savings Programs, long-term care coverage, and eligibility guidelines for assistance.
How do I enroll in Medicaid in Oregon?
If you are under 65 and don’t have Medicare:
- The best way to enroll in Oregon Health Plan is online at HealthCare.gov or One Oregon.
- You can also contact HealthCare.gov by phone to enroll at 1-800-318-2596.
- Residents with certain special-eligibility status can enroll through Oregonhealthcare.gov.
- You can also get in-person assistance with an application by contacting a community partner. This link will help you find assistance in your area.
- Those who are currently enrolled Oregon Health Plan and Healthy Kids need to renew their benefits annually. They will receive a notice from the state when it’s time to do this, and the Oregon Health Plan website has renewal forms and full renewal applications available for existing members.
If you are 65 or older or have Medicare:
- You can apply for Medicaid or a Medicare Savings Program (MSP) using One Oregon.
- You can also receive free assistance with applying through an Area Agency on Aging (AAA) or a Department of Human Services Office for Aging and People with Disabilities.
Oregon Medicaid enrollment
Prior to 2014, it was anticipated that Oregon would enroll 400,000 new members in the Medicaid program by 2022. While that prediction may ultimately prove accurate, Medicaid enrollment in Oregon has fluctuated rather dramatically from the launch of the ACA and Medicaid expansion.
In the fall of 2013, prior to the launch of the ACA’s exchanges, Oregon’s total Medicaid/CHIP enrollment stood at more than 626,000.
By March 2016, enrollment in Oregon Medicaid/CHIP was 1,076,961 (a 72 percent increase compared to 2013 enrollment, which was at that point tied with Colorado for the third highest percentage growth in the country, behind only Kentucky and Nevada).
Then, Oregon Medicaid enrollment dropped sharply from early 2016 to early 2017. Not coincidentally, Oregon had experienced glitches with its Medicaid enrollment platform prior to 2016, and applicants’ eligibility had not been properly screened. Between March 2016 and August 2017, nearly 300,000 enrollees were removed from the Medicaid program once it was determined that they weren’t actually eligible for benefits.
By June 2018, Oregon Medicaid/CHIP enrollment had rebounded to 963,857 people.
In July 2020, total Medicaid/CHIP enrollment was 1,066,371 — an increase of about 440,000 or 70 percent since the fall of 2013 and the sixth largest percentage increase among all states and Washington, DC over the time period.
As of November 2021, enrollment in the Oregon Health Plan reached 1,344,876. This was an enrollment increase of 24.57% since the emergency declaration on March 8th, 2020, ten days before OHA implemented several temporary policy changes in response to the COVID-19 pandemic.
Oregon is one of a handful of states that used a fast-track enrollment process prior to 2014 that let them identify Medicaid-eligible residents based on their participation in other state-run programs. Since their income and immigration status were already verified, the people who were identified as fast-track eligible did not have to go through the full application process for Medicaid.
The state sent out notifications to about 300,000 residents, letting them know they were eligible for Medicaid. People who received one of these letters were able to simply fill out the enclosed form and returned it in the postage-paid envelope to be automatically enrolled in Medicaid. Oregon also had a system that let eligible fast-track enrollees complete the enrollment process by telephone.
Oregon Medicaid history
The Oregon Health Plan is Oregon’s Medicaid program, overseen by the Oregon Health Authority. The Oregon Health Plan was conceived and implemented in the late 80s and early 90s. Oregon Medicaid was on the cutting edge of health care reform, addressing the issue of access to healthcare long before most other states.
During that time, physician John Kitzhaber was a state senator and was instrumental in shaping Oregon’s Medicaid program. Kitzhaber went on to be governor of Oregon from 2011 to 2015. During the late 80s/early 90s, Oregon’s uninsured rate was about 18 percent. According to a Gallup data, that rate had dropped to 14 percent by mid-2014, and to just 8.8 percent by mid-2015. That put Oregon third in the nation in terms of percentage drop in the uninsured rate by the first half of 2015. However in 2020, the coronavirus and Covid-19 pandemic triggered widespread job losses across the United States and subsequent losses of employer-sponsored health insurance. Oregon’s uninsured rate climbed to 13 percent as of May 2020.
In 1994, Oregon expanded Medicaid to cover all residents with incomes below the poverty level under a basic benefits package (OHP Standard, as opposed to the OHP Plus program that applies to pregnant women, children, disabled residents, and others who were already eligible for Medicaid). That year, 120,000 newly-eligible residents enrolled, and Portland area hospitals saw a 16 percent reduction in unpaid medical bills.
In 1995, Medicaid in Oregon began to add mental health and chemical dependency coverage, although these services were removed from the basic benefits package in 2003. In most states, Medicaid was only available to pregnant women, children, seniors, and adults with disabilities prior to 2014 — Oregon was way ahead of its time in expanding basic coverage to everyone living in poverty.
Pre-ACA: Years of budget woes
Over the last two decades, Oregon Health Plan has instituted numerous cost-containment measures, including a requirement that limits beneficiaries to a single pharmacy (chosen by the insured member), a disease management program providing case management to clients with specific chronic illnesses, and copays for most adult clients who are not part of exempt groups (tribal members, pregnant women, etc.). Coverage for vision/hearing, and durable medical equipment was eventually discontinued as the state worked to reduce Medicaid expenses.
In addition, the state began requiring small premiums to participate in OHP Standard, and that led to roughly 40,000 enrollees dropping their coverage because they were unable to pay the premiums (now that Medicaid has been expanded, they are once again eligible for coverage without premiums).
By 2004, considerable budget issues led to a ballot initiative that would have generated revenue for OHP via additional income taxes, corporate taxes, and tobacco taxes. The ballot measure failed though, and OHP Standard ceased new enrollments on July 1, 2004. It didn’t open back up again until 2008, at which point there was a lottery to claim 3,000 available spots in the program (tens of thousands of people applied to get one of the spots, and many people applied more than once over the ensuing years).
It was a natural progression for Oregon to accept federal funding to expand Medicaid in 2014. Coverage is now available for all legally present residents with incomes up to 138 percent of poverty, and the federal government is picking up most of the tab for the newly-eligible enrollees (94 percent in 2018, although this will drop to 90 percent in 2020 and future years). There’s no longer a lottery system in Oregon — everyone who qualifies can enroll in the program.
Coordinated Care Organizations: A $1.9 billion reward for reducing Medicaid cost growth, and a new focus on social determinants of health
In 2012, Oregon Health Plan started using Coordinated Care Organizations (CCOs) which divide the state into 16 regions and include a network of various types of providers who work together to provide all-encompassing care for their clients. The CCOs coordinate mental, physical, and dental care and the focus is on improving patient outcomes while also lowering total costs for the Medicaid program.
Part of the impetus for the CCO system is a deal that former Governor Kitzhaber struck with the federal government in 2011. The state had a $2 billion shortfall in its Medicaid budget, and the federal government agreed to give them $1.9 billion over five years — but only if they could find a way to have their Medicaid costs grow 2 percent slower than the national average (taking spending growth from 5.4 percent down to 3.4 percent). Because so much money was at stake, Oregon once again set itself up as a Medicaid vanguard — attempting to maximize patient outcomes and quality of care, while minimizing costs.
Oregon’s CCO Medicaid waiver ran from 2012 to 2017. In December 2017, the Center for Health Systems Effectiveness at Oregon Health & Science University prepared a report analyzing the impact of the waiver. And the state reported in early 2018 that per member per month Medicaid spending had been “at or below sustainable growth targets from 2013 to 2017.”
In 2017, Oregon proposed an extension of their 1115 demonstration waiver, asking for federal approval to build on the success of the CCO model and include a new focus on the social determinants of health and value-based payments. CMS granted approval of the demonstration waiver extension in 2017, and it will remain in effect until mid-2022.
Dispute with FamilyCare
The CCOs were given different rates based on the overall health of their members. And in September 2015, Oregon Health Authority retroactively reset rates back to January 2015 (the state has noted that “limiting state spending growth in order to meet the waiver terms and requirements has been largely a rate setting
task.”) Overall, rates fell by 0.8 percent, but the impact was felt the most by FamilyCare, which has more than 130,000 members and was hit with a 17 percent rate decrease. Oregon Health Authority noted that they “agonized” over the need to retroactively reduce rates for the CCOs, but said that the move was required by the federal government.
Oregon Health Plan and FamilyCare were in mediation for months over the payment issue. In March 2016, the Oregon Health Authority announced that it was proposing a settlement with FamilyCare, but FamilyCare fired back, stating in a press release that the state’s proposed settlement “demonstrate[d] an abuse of power.” FamilyCare also noted that the state had failed to “provide critical information used to develop and calculate the coordinated care organization (CCO) Medicaid reimbursement rates despite multiple requests by FamilyCare” and pointed out that such data had previously been publicly available.
In late March, FamilyCare announced that Oregon Health Plan had rejected the CCO’s offer to resume mediation, and FamilyCare indicated their intent to take legal action on the issue. But in late May, FamilyCare and Oregon Health Plan reached a settlement agreement which called for FamilyCare to drop their litigation, and for Oregon Health Plan to retract their plans to terminate FamilyCare as a CCO. Under the terms of the settlement, FamilyCare was expected to reimburse the state for $55 million in overpayments.
COVID-19 Pandemic response
Oregon Health Authority put several temporary policy changes into action in response to the COVID-19 pandemic. Oregon’s temporary Medicaid policy changes are:
- Anyone who was receiving benefits on or after March 18, 2020 will not have benefits closed if there has been no death, incarceration, out-of-state move, voluntary benefit closure, administrative error, or convicted fraud.
- Oregon Health authority now accepts self-attestation of eligibility criteria without any additional verification, other than citizen and immigration status verification.
- Increased unemployment payments, which ended September 2021, and federal stimulus payments do not count towards income.
These temporary policy changes are to last through the national emergency period that was declared on March 8, 2020.
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.