Health Care Costs to Surge for Central Oregon Families

Overview:

More than 12,000 families in Deschutes County face an annual average $1,300 increase in health care costs as federal rule changes and looming budget cuts threaten to strip coverage from over a million Oregonians.

20% of patients at St. Charles Medical Center use the Oregon Health Plan. *Courtesy: St. Charles Medical Center* Credit: St. Charles Health System

Oregon’s Medicaid program is “the backbone of our health care system,” explained Tami Cline, President of the Oregon Nurses Association in a recent meeting. “It covers 1.4 million Oregonians — that’s one in three of us — including half the kids in the state. And it brings $3.6 billion every year into hospitals, clinics, and long-term care facilities. Those dollars keep our rural hospitals open, keep our clinics staffed, and keep the lights on for the people who do the hands-on healing.”

The federal government put a hold July 4 on some Medicare and Medicaid rule changes, delaying new regulations that were supposed to make it easier to sign up for Medicaid and Medicare Savings Programs until Oct. 1, 2034.

A rule that would have made it easier for Medicare users to get help paying for health care costs is now blocked, meaning about 1.3 million people could miss out on thousands of dollars in savings they should qualify for.

Another rule that would have simplified enrollment in Medicaid, the Children’s Health Insurance Program and the Basic Health Program is also blocked. The Congressional Budget Office estimates that around 2.3 million people could lose their health coverage by 2034 because of this.

Funding Changes and Budget Cuts Ahead

Other health care funding changes are taking effect. By Jan. 1, 2026, extra federal funding to help states expand Medicaid will end — funding that had given states an additional 5 percent federal contribution for two years after they expanded their programs. On the same date, payments to doctors under Medicare will increase by 2.5 percent.

The government will be required to make automatic spending cuts within 14 days after the current congressional session ends, which would cut Medicare spending by about $45 billion and other federal spending by about $185 billion in fiscal year 2026. Under the reconciliation bill, eligibility renewals would be required for all Medicaid recipients every six months.

Health Care Leaders Voice Concerns

At a roundtable discussion on Aug. 21, Senator Jeff Merkley met with several members of the health care community to discuss the effects of healthcare funding cuts. Concerns were expressed about the nearly 12,000 residents of Deschutes County who are expected to lose health benefits. Dr. Mark Hallett from St. Charles Medical Center said that 20% of the hospital system’s patients are on OHP, the state’s Medicaid program. Without OHP, patients would likely defer or delay necessary treatments. “We see this as a definite impact in terms of how we can improve the health of Central Oregon. The SNAP cuts are very concerning to us. Vaccinations are a huge concern,” Hallett said.

Senator Jeff Merkely expressed concern about the effects of federal funding cuts on healthcare coverage. *Courtesy: Sarah Isak-Goode*

Sen. Merkley warned that the impacts would extend beyond those directly losing coverage. “Century Foundation has estimated some 300 across the country, hospitals and clinics make a lot of business,” Merkley said. “It isn’t just the folks on Oregon Health Plan who lose health insurance — every single person in the community, regardless of the source of their health insurance, they lose their health care whether the clinic or the hospital disappears. This will have a huge impact and is going to be particularly hard in rural areas.”

The senator also addressed broader issues with pharmaceutical costs, noting that American taxpayers fund more pharmaceutical research and development than any other nation, yet Americans pay among the highest drug prices in the developed world. Merkley said constituents have told him they travel to Canada and Europe to buy medications at “sometimes half the price, sometimes at a 10th of the price” compared to U.S. costs.

Merkley said he supports a “most favored nation” approach that would ensure Americans receive the best drug prices among developed countries, citing support from Robert Kennedy Jr., Secretary of the U.S. Department of Health and Human Services.

Overall, the senator emphasized the urgency of addressing these health care challenges before they worsen. “If we don’t see reversing a lot of what’s in this bill, if Congress can’t pass a repeal, we’re going to be sitting here two years from now, four years from now, deep into a crisis that’s on the horizon now,” Merkley said. He stressed the need for the medical community to educate legislators about the bill’s impact and mobilize public attention. “It’s like we can see that the car is headed for the cliff — we want to put the brakes on before we get there.”

This post has been updated.