CHSE director John McConnell will participate on the new committee guiding implementation of Oregon Senate Bill 889, a bill designed to contain health care cost growth in the state.

With the passage of the bill earlier this year, Oregon joined four other states aiming to put the brakes on growth in overall health care spending by setting state spending targets.  Oregon has seen improvements in health care coverage over recent years, but growth in out-of-pocket costs still threatens to make health care unaffordable for families, according to Governor Kate Brown. 

Oregon household income grew at 15% between 2010 and 2016, while health care premiums jumped 25%, and family deductibles increased 77%. Going forward, costs for private health coverage are expected to continue to outstrip wages. 

SB 889 establishes annual health care spending growth targets and strategies for holding health care systems accountable to them. Oregon already has experience (mostly successful) in applying growth-rate limits to public health programs, including Medicaid program and public employee coverage. The new 18-member Implementation Committee for Oregon's Sustainable Health Care Cost Growth Target Program will advise on extending this strategy to all insurance coverage in the state.

Governor Brown has tasked the new committee with two goals: first, identifying a "sustainable" annual health-care spending growth target, and then providing input on cost drivers and accountability tools to help the state ratchet down costs. 

Dr. McConnell has served as a public expert on several state committees on health care spending over the past two decades. Other members on the current committee include representatives from health-insurance companies and provider organizations as well as Oregon Health Authority leaders, union leaders, consumer advocates, and other stakeholders. 

The committee will present its first benchmark to the Oregon Health Policy Board by September 15, 2020.

About the Center for Health Systems Effectiveness

The Center for Health Systems Effectiveness researches health care service delivery with the aim of improving the value and sustainability of the U.S. healthcare system. Our mission is to provide the analyses, evidence and economic expertise to build a better and more sustainable health care system.

To learn more about the CHSE, visit us on the web or email us at CHSE-info@ohsu.edu.