Cost-Containment Report Outlines Proposal for a Statewide Growth Benchmark

Published Thursday, October 4, 2018

The Joint Interim Task Force on Health Care Cost Review submitted its report to the Oregon Legislature on September 13, outlining the feasibility of creating a hospital rate-setting process in Oregon. The task force addressed directives set forth in Senate Bill 419 during the 2017 Legislative Session. While its initial focus was to explore the feasibility of implementing the rate-setting model established in Maryland, the task force ultimately recommended the Massachusetts model for consideration.

The task force recommends a plan to control healthcare expenditures by expanding a cost growth target across all payers and providers. This would be accomplished by: 

  • Establishing a statewide benchmark for the annual rate of growth of total healthcare expenditure.
  • Ensuring the calculation of total healthcare expenditures includes spending on all healthcare services across the state for all populations.
  • Identifying individual healthcare providers and payers who shall publicly report and be held accountable for staying at or below the benchmark.
  • Supporting a market-oriented approach by enhancing public reporting, transparency, and collective accountability for spending for all providers and payers.
  • Aligning reporting and use of quality measures across payers and providers.
  • Determining the oversight entity responsible for maintaining and enforcing the benchmark. 

The report also outlines a policy blueprint and framework for developing, implementing, and operationalizing the statewide benchmark by 2020. To read the full report click here.