- November 28th 2011
Oregon Gov. John Kitzhaber, MD, is backing across-the-board Medicaid pay cuts to close nearly the entire remaining $735 million revenue shortfall in the state's two-year, $15 billion 2012-13 budget.
The proposal would reduce Medicaid rates by 19% in fiscal 2012, which begins July 1, and could require an additional 15% cut in fiscal 2013 if a new care coordination program fails to produce enough savings, according to estimates by the Oregon Assn. of Hospital and Health Systems.
Oregon Medicaid physician pay rates already are as low as 60% of what Medicare pays, said Betsy Boyd-Flynn, spokeswoman for the Oregon Medical Assn. These cuts "would really reduce access, and they would probably drive more physicians into retirement."
Hospital Medicaid rates cover only about 70% of costs, said Andy Van Pelt, a spokesman for the hospital association.
Some primary care doctors already limit their Medicaid participation. In 2009, 53% of all Oregon physicians accepted new Medicaid patien [Read more]