With just days remaining in the 2025 Oregon Legislative Session, lawmakers are working swiftly to address their remaining priorities ahead of Sine Die no later than June 29. Our members commend efforts to fund the Oregon Health Authority, especially given mounting federal challenges to Medicaid and a less-than-stellar state budget forecast in May.

However, Coordinated Care Organizations (CCOs) remain concerned about a few proposed cuts to OHA that vulnerable Oregonians can ill afford at this juncture. The good news is there’s still time to fix these gaps and avoid jeopardizing critical care for our communities before legislators adjourn.

Firstly, the Governor’s Recommended Budget initially included a one-time cut of $18.6 million to the CCO Quality Incentive Program (QIP). This program gives CCOs the opportunity to earn financial bonuses each year, shared with providers to improve upon a set of health care quality metrics — incentivizing our organizations to pioneer innovations and improvements in patient care.

Combined with federal matching dollars, this actually adds up to a $60 million reduction in payments for frontline providers. We strongly urge legislators to restore this funding, ensuring the highest quality care for patients in both traditional medical services and social determinants of health.

Next, our members are advocating for two additional OHA budget notes that will allow CCOs to meet rising costs and expand access to care:

• Note 1: Require that legislative allocations for CCO budgets result in a modest 3.4% increase compared to the 2023-25 biennium.
• Note 2: Ensure that the $30 million from the General Fund approved by the Legislature and matched with $70 million in federal funds for a mid-year 2025 CCO rate adjustment is distributed equitably among CCOs.

Both of these notes are needed to provide CCOs with the resources they need to meet rising costs and a surge in behavioral health utilization. As the need for services increases, now is the time for Oregon to make sure it we can rise to the occasion and deliver the kind of equitable access and services that our communities depend on.

Medicaid is not just a budget line — it is a lifeline for families, seniors, those managing behavioral health challenges, and people with disabilities. Though storm clouds are gathering around Medicaid at the federal level, Oregon has the opportunity to defend our local populations, lead with stability, and prop up the Coordinated Care System as a model for excellence nationwide.

Now is the worst time for Oregon to pull investments from Medicaid amid federal uncertainty. We hope that, with the few days left in session, our leaders will act to avoid damaging cuts that will reverse recent gains in health equity and increase long-term costs.

Protect Medicaid today and keep Oregon families healthy and whole.