Oregon's Medicaid Tax Passed

Date: March 06, 2019

More taxes to come on tobacco and employers with employees on OHP?

Following a 23-7 vote, the Oregon Senate has passed a Medicaid tax on hospitals, insurance plans, and risk coverage for self-insured employers. The bill had already passed the Oregon House on a 44-15 vote and is expected to be signed by the Governor this week.

HB 2010 continues the health insurance premium tax first enacted by the Legislature in 2017, and then upheld by voters in 2018 when Measure 101 was on the ballot, but it raises the tax rate from 1.5 percent to 2 percent through 2026.

NFIB has remained opposed to funding Medicaid via taxes on health insurance premiums because there exists a fundamental unfairness in raising premiums on business owners and employees enrolled in group plans to hold down premiums for those Oregonians enrolled in an individual plan. For those whose premiums are subject to the tax, this is a tax increase.

Rep. Cedric Hayden (R-Roseburg) offered amendments to the bill that would have exempted school districts and small businesses from having their insurance premiums subject to the 2 percent tax, but these amendments were rejected by the House Health Care Committee.

The passage of HB 2010 marks the first step in a series of legislative actions expected to raise money to fully fund Oregon’s Medicaid system. Gov. Kate Brown has suggested that increased taxes on tobacco and a new tax on employers with employees on the Oregon Health Plan (OHP) are likely options to raise additional revenue.

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy