The Oregon Legislature and Governor Kate Brown just passed $550 million new Healthcare Taxes.

On July 3rd, Governor Kate Brown signed into law House Bill 2391.  In spite of $1.5 BILLION dollars in new general fund revenue, the bill raises $550 million in new taxes from your healthcare premiums and hospital costs.

 

Who will pay the tax?

  • 217,000 Oregonians in the individual market who pay the full cost of their own health insurance or buy from the Exchange.
  • 11,681 college students who buy their own healthcare as a requirement of attendance in Oregon’s universities.
  • 15,500 small group (under 50) employers.  These could be a small mom & pop business, or even your local non-profit or church who covers healthcare for their employees.
  • Oregon school districts in the large group market.  House Bill 2391 is expected to suck $25 million dollars from our local schools.
  • Oregon community colleges who buy in the same large group market will also be hit with the tax, causing tuition increases for college students.
  • PEBB public employee plans will be taxed, causing $10 million to be pulled from our General Fund.  Oregon’s seven universities on PEBB will cost shift this burden to students in the form of higher tuition.
  • Medicaid providers themselves will be taxed under this new plan, potentially reducing payments to doctors and nurses who already work at cost to help Oregon’s neediest citizens.
  • Hospitals in our communities will have a hard tax imposed on their net revenues.  This means if your child breaks her arm, or you need a critical care surgery, you’ll be forced to pay a higher share with your insurance as hospitals increase the costs of services to pay for this new tax.

 

Who won’t pay the tax?

  • Large corporations, unions, and the insurance companies themselves.
  • In fact, one section of the bill expressly allows insurance companies to pass the new taxes directly to you, the purchaser.  It’s a Sales Tax on healthcare, and we think voters deserve the right to vote.

 

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