Oregon gets $1.9B to launch Medicaid Coordinated Care Organizations to try to cut health spending

May 5 2012

The federal support will help Oregon's Medicaid Coordinated Care Organizations as they try to cut health costs by 2 percent over two years using preventive care to keep patients healthy.

The Wall Street Journal's Health Blog: Oregon Gets Extra Funds To Test New Medicaid Method
Controlling costs is a major priority for virtually everyone involved in funding health care, including federal and state governments, employers and insurers. … One state, Oregon, reckons it can cut health costs by two percentage points within two years -- and improve health outcomes -- through a new way of delivering care under Medicaid, the state/federal program for the poor (Radnofsky, 5/3).

The Associated Press: Feds To Put Up $1.9B For Oregon Health Overhaul
The Obama administration is buying into an ambitious health care initiative in Oregon, announcing Thursday it has tentatively agreed to chip in $1.9 billion over five years to help get the program off the ground. Oregon hopes to prove that states can save billions on Medicaid without sacrificing the quality of health care. Gov. John Kitzhaber's plan would invest in preventive care to keep patients healthy so they don't need expensive hospitalizations (Cooper, 5/3).

Modern Healthcare: Ore. Coordinated Care To Receive $1.9 Billion From Feds
Oregon's plan to create a network of Medicaid Coordinated Care Organizations moved forward as the names of 14 applicants were released, and it also received a boost as the CMS announced preliminary approval to provide the program with $1.9 billion over five years (Robeznieks, 5/3).

Politico Pro: ACO Concept Reaches Oregon Medicaid
On Thursday, CMS and Oregon announced that they have reached an agreement on a $1.9 billion demonstration program to create Coordinated Care Organizations in the state's Medicaid program, which Oregon estimates will save $11 billion over 10 years (Feder, 5/3).

Oregon Statesman Journal: Oregon To Get $1.9 Billion From Feds To Pay For New Health Plan
Although lawmakers approved the overhaul in their February session, some expressed concerns that it would not result in the $239 million in budget savings projected for the year starting July 1. But Kitzhaber said he anticipated negotiating a deal with the federal government, such as the one announced today, that would produce more aid to cover any potential gap (Wong, 5/3).