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Sustainable Health Care Cost Growth Target


The Oregon Legislature through Senate Bill 889 (2019 Laws) has established the Sustainable Health Care Cost Growth Target Program within the Oregon Health Authority (OHA).

The cost of health care in Oregon has grown and is projected to grow faster than both the state economy and Oregonians’ wages. A health care cost growth target will serve as a target for the annual per capita rate of growth of total health care spending in the state. Cost increases of health insurance companies and health care providers will be compared to the growth target each year. The program will also evaluate and annually report on cost increases and drivers of health care costs.

The idea for a health care cost growth target in Oregon came from Senate Bill 419 (2017) Task Force recommendations. Three other states - Massachusetts, Rhode Island, and Delaware - have implemented or are developing a similar program.

OHA, in collaboration with the Department of Consumer and Business Services (DCBS), and the Oregon Health Policy Board (OHPB) are charged with developing and implementing the program. A consumer and stakeholder-led Implementation Committee will be responsible for recommending steps to operationalize the health care cost growth target and how to measure spending.

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Sarah.E.Bartelmann, Policy Analyst

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Allyson Hagen, Communications

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Sustainable Health Care Cost Growth Target Implementation Committee

The Implementation Committee will begin their work in November 2019 and will make recommendations to the Oregon Health Policy Board and the legislative assembly in 2020.

Implementation Committee documents:
Key topics to be considered by the Committee are:
  • Introduction to cost growth benchmarks
  • Cost growth benchmark methodology
  • Performance assessment
  • Authority and governance of benchmark/performance
  • Transparency and accountability
  • Strategies to meet benchmark and technical assistance
  • Data use strategy
  • Quality, including health equity and disparities

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