On November 5, Oregonians voted 56 percent to 44 percent to approve Measure 44, increasing the cigarette tax from 38 to 68 cents per pack. It will be up to the legislature during the 1997 session to decide exactly how the plan will expand. The funds made available through the tax increase should enable the state to take another step toward its goal.
Observers expect the debate to boil down to a choice between access and equity.
Some argue that the funds should go to expand eligibility to more individuals who are uninsured. At this point, however, there appears to be little doubt that the new funds will be used to expand the reach of the OHP to new individuals and will not be used simply to pay for the existing Medicaid program. According to D'Anne Gilmore, acting administrator of the Oregon Health Plan, Governor Kitzhaber has made it clear that the majority of the revenue will be used to expand access through subsidies to uninsured individuals. Gilmore also notes that the vote to pass the ballot initiative is a show of support for what the Oregon Health Plan has done so far, as well as a sign that the state is still committed to universal coverage. The Oregon Health Council, a nine-member body appointed by the governor and staffed by the Office of the Oregon Health Plan Administrator, will be making recommendations to the governor shortly.