House Democrats Reject Effort to Redirect $50 Million to Fund Oregon Health Plan

SALEM, Ore., June 15 -- The Oregon House Republicans issued the following news release:

Prior to debate on a bill to place a 1.5 percent premium tax on health insurance premiums, House Democrats today rejected legislation that would send $50 million to fund the Oregon Health Plan instead of sending it to insurance companies. House Republicans had sought to use the funds to shore up funding deficits within the state's healthcare services.

"I am extremely disappointed to see the majority party kill this bill," said Representative Cedric Hayden (R-Fall Creek), who originally introduced the legislation. "We had an opportunity to redirect these dollars, which were paid by ratepayers, to benefit Oregonians instead of insurance companies. This bill, which had bipartisan support when it was introduced, was part of an alternative package that could have been adopted to avoid implementing a new 1.5 percent premium tax."

In 2013, the Oregon House of Representatives unanimously passed House Bill 3458 which created the Oregon Reinsurance Program. The funds generated by the program were collected via insurance rates paid by individuals and small group insurance ratepayers. The law, which sunsets on June 30, 2017, requires that in the absence of a decision by the legislature, any excess funds will be sent back to insurance companies. The 2013 legislation did not include a provision that insurance companies refund ratepayers. HB 3465 would have corrected this by redirecting the funds to support funding for the Oregon Health Plan.

The motion to withdraw HB 3465 failed on a party-line vote.