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LOUIS GOMEZ lor LANE COUNTY SHERIFF
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& production, we must deploy patrol deputies
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current funding is not wasted & personnel are
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Oregon Health Plan’s lowered
enrollment helps save millions
About $103 million will
now be available to the
state’s health and human
services department
By Parker Howell
News Reporter
Drastic cuts planned for the state's
health and human services will be
partially alleviated after the Oregon
Health Plan's declining enrollment
generated about $ 103 million.
The Oregon Department of Hu
man Services announced the savings
before the Legislative Emergency
Board on Thursday, receiving ap
proval Friday to use the savings and
$8 million in reserve money to pre
serve some services.
The agency was slated to cut $179
million from its budget after the de
feat of Measure 30 in February. How
ever, with the unexpected savings, the
department will cut fewer services
than previously planned.
DHS Deputy Director Cindy Becker
said the savings are a result of de
creased enrollment in the OHP Stan
dard plan, which provides health in
surance and services to low-income
Oregonians. The OHP Standard pop
ulation dropped from an expected
85.000 people to about 49,000. The
Standard plan provides medical and
dental benefits for working adults
who fall below the poverty line but
don't necessarily qualify for Medicaid.
Becker said new policies have had a
"significant impact" on enrollment in
the Standard plan. Enrollment is
quickly decreasing because of eligibil
ity changes and people who have not
paid new monthly premiums or who
have decided not to re-enroll in the re
duced plan, Becker said.
The savings will allow the depart
ment to extend full services for the
300.000 children and other people
covered by the OHP Plus plan.
However, insurance for the Stan
dard population will still likely be
cut to compensate for about $40
million of the shortfall, Becker said.
Preserving the Standard plan hinges
on potential revenues from a
provider tax, paid by hospitals and
managed care organizations.
Becker said the savings is not a sur
plus. Instead, the funds will prevent
more dire cuts from taking effect.
"Essentially, if the savings had not
been realized, we would have had to
cut another $100 million from the
budget," Becker said.
Becker said she first became aware
of the savings about a month ago.
Lane County Health and Human
Services Director Rob Rockstroh said
the 35,000 people covered by the
CH IP in Lane County could have all
been cut from the program after Mea
sure 30. With the savings, Rockstroh
predicts that about 30,000 will still be
covered after August.
"The whole system is sort of ratch
eted down," Rockstroh said.
Rockstroh added that the county is
still feeling the effects of Measure 28.
Hospitals are also being affected by
post-Measure 30 cuts. More people
now use emergency room services as
their primary care because they lack
health insurance, and hospitals are re
quired to treat all emergency patients
and absorb costs of those patients
who do not have insurance.
"There's a shift to hospitals, too, no
doubt about that," Rockstroh said.
"One of the things that the Oregon
Health Plan was good at was ... elimi
nating some of the losses they were
taking in emergency rooms."
PeaceHealth Spokesman Brian Ter
rett said insurance cuts have affected
the hospital.
"We've had a dramatic increase in
the emergency department of people
who were previously covered by the
Oregon Health Plan," Terrett said.
Terrett said hospitals pass on the
costs of charity care to other paying
patients, although many people don't
think the cuts affect them. Last year
Sacred Heart Medical Center admin
istered just more than $16 million in
charity care.
"People who have insurance will
end up covering most of the cost,"
Terrett said.
The increase in emergency room
care slows down emergency staff and
is inefficient for patients, he said.
"(Emergency room treatment) is
some of the most expensive care that
someone can get," Terrett said.
Becker said the department's cur
rent financial situation is a combina
tion of many cuts.
"The other thing people need to
know is that we've been taking cuts
over the last several years," Becker
said.
Sen. Floyd Prozanski, D-Eugene, ex
pressed his disappointment with the
unexpected savings.
"That's the frustration, because 1
as an elected official have to rely on
the staff of the various agencies to do
their best efforts in providing us
with information we need for poli
cy," Prozanski said.
He added that the savings look bad
for government.
"The real concern for me is the
credibility that the state government
has with the voters," Prozanski said.
"For many people who are opposed
to state government ... or who are
suspicious to what accountability we
have in place, they can basically look
at this and say, 'See, I told you so,'" he
said. "It's almost like we cried wolf
again, but the reality is that it was not
necessary or proper."
Prozanski said he expects DHS to
appear before the Legislative Audit
Committee at its next meeting to ex
plain what went wrong.
"It's a credibility issue not only for
the voters or the citizens, it's also a
credibility of us dealing with the agen
cies in question," he said.
He added that the Legislature may
need to meet more frequently than
the current biennium schedule in
order to prevent such situations in
the future.
Contact the city/state politics reporter
at parkerhowell@dailyemerald.com.
Lauren Wimer Photographer
About $103 million was recovered from the Health and Human Services budget, which will affect the Oregon Health Plan and the Lane
County Mental Health Services. The money is available now that OHP's enrollment in their Standard plan declined by nearly half.
Oregon Daily Emerald
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