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News & Press: General Announcement

Sustainable Health Care Cost Growth Target Committee Finalized

Tuesday, October 29, 2019   (0 Comments)
Posted by: David Walls
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On October 18th, Governor Brown appointed the Implementation Committee task force to develop Oregon's Sustainable Health Care Cost Growth Target as outlined in 2019 Senate Bill 889. The Governor directed the committee to ensure:



• A target rate of growth is selected that provides an aggressive restraint to cost growth so that health care costs grow at a sustainable rate for families and businesses in Oregon.
Transparency of cost drivers is prioritized, and the program provides meaningful information ­utilizing the state's All Payer All Claims (APAC) database and other data sources-to identify and report publicly on areas of high cost, cost growth drivers, and variation in price and utilization.
The program provides information on cost drivers and savings opportunities to other programs within the Oregon Health Authority and the Department of Consumer and Business Services to support respective roles in setting, negotiating, or approving affordable health plan rates.
Health care quality is a key component of the program, with a focus on inequities and reducing disparities in health care.
Robust enforcement and accountability tools are recommended to hold health insurance carriers and providers accountable for meeting the target, including presenting a legislative concept for the 2021 Legislative Session for authority needed to implement the recommendations.


SB 889 was passed by Oregon lawmakers in an effort to curb the rise of health care costs. Massachusetts, Delaware, and Rhode Island have similar programs setting annual growth benchmarks between 3.0% and 3.8% to control the rise in total healthcare spending. The Oregon Health Authority has published an FAQ for providers outlining how the program will be developed. 


Committee meetings are open to the public. The first meeting will be held November 13th and the group will meet monthly to have a plan for the Oregon Health Policy Board by the summer 2019.

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