Please ensure Javascript is enabled for purposes ofwebsite accessibility

Measure 101 passes with big lead; proponents celebrate


Supporters of Measure 101 cheer Tuesday night as election results show it passing with a commanding lead. (KATU Photo)
Supporters of Measure 101 cheer Tuesday night as election results show it passing with a commanding lead. (KATU Photo)
Facebook Share IconTwitter Share IconEmail Share Icon

Oregon approved taxes on hospitals, health insurers and managed care companies in an unusual special election Tuesday that asked voters -- and not lawmakers -- how to pay for soaring Medicaid costs that now include coverage of hundreds of thousands of low-income residents added to the program's rolls under the Affordable Care Act.

About 61 percent were saying yes to the measure while about 39 percent were saying no.

Oregon Secretary of State Dennis Richardson live streamed the election results:

Oregon expanded its Medicaid coverage under the Affordable Care Act but is now hampered by rising health care costs.

The tax will generate between $210 million and $320 million in revenue over the next two years.

The measure creates a 0.7 percent tax on some hospitals and a 1.5 percent tax on the gross health insurance premiums and on managed care organizations. The nonpartisan voter pamphlet said if the measure failed, the state might lose an additional $630 million to $960 million in federal Medicaid matching funds that flow to the poorest in the state.

That possibility was enough to galvanize health care providers, doctors and nurses associations and insurers behind Measure 101. Hospitals said the costs of treating uninsured patients in emergency rooms would be more than the taxes imposed.

Proponents also argued that more than 350,000 Oregonians who secured health care coverage under the expansion would lose it if Measure 101 failed.

They declared victory shortly after returns were released at about 8 p.m.

"Measure 101’s passage during a special election shows how strongly Oregon voters feel about protecting health care," the group "Yes for Healthcare" said in a statement.

In a speech before supporters, Gov. Kate Brown celebrated the passage of the measure.

"Every Oregonian deserves access to health care," she said before a cheering crowd. "Here in Oregon you should be able to see a doctor when you're sick and get the medications when you need them and it shouldn't bankrupt you."

Watch part of the speech:

The ballot measure arose from a grassroots campaign to put parts of a bipartisan legislative funding solution passed last year before voters.

Republican Rep. Julie Parrish and several colleagues were angered by portions of the bill that exempt unions and large, self-insured corporations like Nike from Medicaid taxes but not Oregonians who buy insurance on health care exchanges.

They also believed hospitals and insurers will pass the cost to consumers, despite language that limits premium rate increases to 1.5 percent.

If the measure had failed, lawmakers would have had to address health care funding in a legislative session next month.

After the measure's passage, Republican House Leader Mike McLane of Powell Butte, said the state now needs to focus on making the Oregon Health Authority more efficient as well as the administration of the Oregon Health Plan, which is Oregon's Medicaid program.

"Our state’s health care programs have suffered from chronic failure for years," he said. "This culture of incompetence cannot be excused or forgotten in the wake of this ballot measure."

He also called on lawmakers from both political parties to "safeguard and protect the investment in our state government that Oregon taxpayers have affirmed tonight."

In her own statement, Oregon House Speaker Tina Kotek, a Democrat, also celebrated the passage of Measure 101.

"Oregonians were loud and clear tonight: Health care is a right that we will protect," she said. "By passing Measure 101, Oregon voters affirmed that everyone has a right to access affordable health care -- regardless of where they live or where they work."

Senate President Peter Courtney, also a Democrat, was more reserved in his celebration of the passage of the measure.

"It may be a win, but we aren’t out of the woods yet," he said. "Our budget focus must now shift to the February forecast and the effects federal tax changes will have on state revenue. The upcoming session is short. It moves fast. We have a lot of work to do."

Loading ...