Sponsored by Forest Grove Economic Development
Home Back Issues May 2013 What is driving the cost of health care?

What is driving the cost of health care?

| Print |  Email
Articles - May 2013
Monday, April 29, 2013
Article Index
What is driving the cost of health care?
Cost shifting
Aging population
New technologies
Reform

Reform

The Affordable Care Act gets underway in earnest starting next January, and Oregon is leaping ahead of most states to comply. The federal government granted the state $226 million to set up Cover Oregon, a health insurance exchange that will initially serve only the individual and small group markets. It intends to enable small companies to offer employees various levels of choice to shop for the plan they prefer. Cover Oregon will coordinate payment of premiums between the employer and the mix of plans selected. In April the Obama administration announced that states could delay the rollout of small-employer exchanges until 2015, but Oregon’s exchange will be implemented as planned next year, according to Lisa Morawski, Cover Oregon’s communications manager.

Oregon has also moved swiftly to approve 15 coordinated care organizations (CCOs) to serve Oregon Health Plan and Healthy Kids plan members in 90% of the state. CCOs are networks of doctors, therapists, dentists and other professionals who have banded together to ensure local at-risk patients get effective treatment for chronic illnesses, receive preventative care and avoid the emergency room.

Although CCOs are designed to reduce costs, other ACA provisions could initially raise prices in the individual insurance market. That’s because the law will remove pre-existing conditions as a reason for denying coverage and mandate expansion of benefits, such as covering prescription drugs, and mental health services, and providing preventive care without a copay or deductible. Premiums for older plan members must be no more than three times those of younger members, lowering costs for the old but probably raising them for the young. Federal premium tax credits will offset some of the cost increases.

Even as state and national reforms move forward, it’s impossible to say whether these changes will meet their dual goals of delivering quality care to everyone while controlling costs. More than most states, Oregon is on a path to do just that. But for now, cost shifting, expensive technologies and the demands of an aging population continue to place an untenable burden on the state’s health care system.

0513 Data Graph 06

SOURCE: U.S. BUREAU OF LABOR STATISTICS

0513 Data Graph 07

 SOURCE: THE KAISER FAMILY FOUNDATION; CENTERS FOR MEDICARE & MEDICAID SERVICES

Brandon Sawyer is research editor for Oregon Business. You may reach him at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 



 

More Articles

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

Portland: Where young people go to work?

News
Friday, June 06, 2014
UntitledBY KATIE AUSBURGER | OB GUEST CONTRIBUTOR

How to build a hipster-friendly work environment.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

Blips and trends in the housing market

News
Thursday, June 26, 2014
062614 thumb realestateBY ERIC FRUTS | OB BLOGGER

Last year, the housing market in Oregon—and the U.S. as a whole—was blasting off. The Case-Shiller index of home prices ended the year 13% higher than at the beginning of the year. But, was last year a blip, or a trend?


Read more...

Attack of the Robin Sages

Contributed Blogs
Monday, July 07, 2014
070714 thumb linkedinfakesBY TOM COX | OB BLOGGER

Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.


Read more...

Risks & rewards of owning triple net investments

Contributed Blogs
Thursday, July 24, 2014
NNNinvestmentBY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR

With the increasing retirements of Baby Boomers, a massive real estate shift has created a significant increase in demand for NNN properties. The result? Increased demand has triggered higher prices and lower yields.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS