Overview
The Oregon Legislature through
Senate Bill 889 (2019 Laws) and
House Bill 2081 (2021 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. The health care cost growth target is 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 provider organizations 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.
What's New
Oregon's cost growth target for 2026-2030 is 3.75%. The target was set using a 50/50 blend of the 5-year historic average annual growth in Oregon's median wage and the 5-year historic average annual growth in regional inflation (as measured by the Consumer Price Index – West), minus one percentage point to bend the cost curve. The new target of 3.75% was recommended by a minority of the short-term workgroup that reflected consumer advocate, health care purchaser, and economist perspectives. In the event of extraordinary circumstances, including highly significant changes in the economy or the health care system, OHA may adjust the target of 3.75% up or down to reflect a changing landscape. This would be done after reviewing economic indicators and health system performance, and engaging with the Oregon Health Policy Board as needed.
Click here for more details about the cost growth target for 2026-2030.