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About Northwest labor press. (Portland , Ore.) 1987-current | View Entire Issue (July 20, 2007)
Lawmakers nibble around edges trying to fix health care Medium-sized steps were what labor was able to achieve this year in Salem About 650,000 Oregonians have no health insurance. Three million other Oregonians have access to health in- surance, but at a greater and greater cost, to someone — employers, gov- ernment, or themselves — every year. What did Oregon lawmakers do this year about this institutional crisis? More than the U.S. Congress, which is where the national problem could be solved. But less than they could have. Many health system reform pro- posals backed by Oregon labor organi- zations fell victim to opposition from the hospital, insurance and pharma- ceutical industries. “The profiteers in the health care industry have a hammer lock on the whole system,” said Arthur Towers, political director of Service Employ- ees International Union (SEIU) Local 503. “So it feels like a huge victory even when we take a medium-sized step.” On health care at least, medium- sized steps were what labor was able to achieve this year in Salem. The most comprehensive was Sen- ate Bill 329, a bill closely tracked by the labor-backed health-care-voter group Oregonians for Health Security that was signed into law June 28. If it fulfills the hopes of its authors, Sena- tors Ben Westlund and Alan Bates, all Oregonians will be insured in a few years time. SB 329, the product of a year’s work by a Senate task force, sets up a health insurance purchasing pool that any individual or group in Oregon can join and that uninsured individuals would have to join or face a tax penalty. The idea is to get a better rate from insurance companies by combin- ing hundreds of thousands or millions of Oregonians into one giant pur- chaser. The insurance product they purchase would be closely regulated to guarantee certain minimum bene- fits, including preventive care, which would be fully covered with no co-pay or deductible. Employers and labor-management health trusts could still offer their cur- rent insurance, or they could join the pool and pay the premiums for em- ployees. Bates, the bill’s co-sponsor, says he thinks it will cost around $350 a month per person, but most of those who are currently uninsured will pay only part of that. The program would stretch federal Medicaid dollars so that everyone earning up to four times the federal poverty line would get some subsidy. The bill passed handily in the House and Senate, with just 13 “no” votes among the two chambers’ 90 members. If it’s supposed to save money by cutting into insurance com- pany profit margins, why didn’t the in- surance industry oppose it? Because, Bates explains, they’ll make up for it in volume — right now the uninsured are a lost market opportunity. None of this will happen immedi- ately. SB 329 sets up a seven-person panel, with staff support, to work out details of how the program would op- erate. They’ll give a progress report to the Legislature in its special session next February, and then present the fi- nal program for approval in the 2009 legislative session. That’s when the tough vote will take place. Another health care reform to pass this session was the governor’s Healthy Kids Plan, which would raise the cigarette tax by 85 cents a pack to pay for insurance coverage for all 117,000 of Oregon’s uninsured chil- dren. Lawmakers couldn’t get the three-fifths majority needed to pass the tax increase, and instead referred to voters on the November 2007 bal- lot. Medicare covers all those 65 and over. So if Oregon covers all kids 18 and younger, that leaves just 19-64 — 46 years — to worry about. It’s incre- mental. Even more incremental is Ore- gon’s prescription drug bulk purchas- ing program (OPDP). It expanded this year without a peep of opposition from the pharmaceutical lobby, which fought its founding in 2003 and its ex- pansion in 2005 and 2006. Now any individual or group can join Oregon’s pool and get a discount on prescrip- tion drugs. That’s what backers had started out proposing in 2003, but the pharmaceutical lobby was able to limit the pool to individuals over 54. After backers failed to expand the program in the 2005 session, they took it to voters in 2006 and got it broadened to local governments and E E FR uninsured individuals. Pharma must have given up: the proposal to expand the program to private businesses and health plans passed 58-0 in the House. It was easy to support some- thing when it had no opposition, a Re- publican lawmaker told Oregonians for Health Security Director Maribeth Healey. Another pooling proposal finally saw the light of day — combining the state’s 198 school districts to bargain better rates on health insurance cover- age for 85,000 education employees and their families. While past Repub- lican-led sessions had stopped the bill, early this year, Democrats over- came objections from the Oregon School Boards Association, which had profited by acting as an insurance broker. 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