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Theodore R. Kulongoski, Governor
“Assisting People to Become Independent, Healthy and Safe” 
An Equal Opportunity Employer
 
Department of Human ServicesDepartment of Human ServicesDepartment of Human ServicesDepartment of Human Services
Office of the Director 
500 Summer Street NE, E-15Salem, OR 97301-1097(503) 945-5944Fax: (503) 378-2897TTY: (503) 947-5330
 
November 9, 2009Eric FruitsPortland, ORMr. Fruits,In accordance with ORS 192.440(2), this letter is to acknowledge that the Department of Human Services received your request for records dated November 3, 2009. You asked JustinDickerson to send you a copy of the IMPLAN study cited in the Oregon Business article“Healthy Jobs”.The records you have requested do not exist. The IMPLAN analysis related to the numbers inthe Oregon Business article was done as part of the agency’s internal processes. There is no“study” as such. The numbers provided to Mr. Bell for his article were projected jobs based onthe analysis of the impacts of the Governor’s Recommended Budget and a comparableanalysis of HB 2116.The following summary of information was provided to Mr. Bell:In addition to expanding health care coverage to children and adults in Oregon, HB2116 will provide approximately 3,600 new and permanent jobs when fullyimplemented.The jobs prediction comes from using a software program called IMPLAN (IMpactAnalysis for PLANing), which is a standard and widely used economic analysis tool. TheIMPLAN model is conservative and straightforward in that it measures the economicimpact of new investments, not revenue that are already here. For HB 2116, the newinvestments would be the increased federal dollars. This avoids double counting staterevenues that otherwise may have been spent elsewhere in the economy. This modelalso does not account for additional savings and growth in the economy that will comefrom improving the health of this population, such as the reduced health care costs thatcome with preventative care or increased productivity due to fewer missed days atwork.Therefore, based on the new federal dollars brought to Oregon by HB 2116, theconservative prediction is that 3,600 jobs will be created due to direct or indirectspending, primarily in the health care sector. More simply, the increased number of insured people will mean more people going to health care providers, which will requirestaff, supplies and services in every region of Oregon.
 
Additionally, I am providing the full document from which this summary was taken. If I canprovide additional information, please feel free to contact me.Thank you,
Keely L. West 
 Public Records OfficerOregon Department of Human Services
 
Office of Communications
 
500 Summer St. NE E-15
 
Salem, OR 97301-1097
 
503-945-6292
 
Summary - Hospital Provider Tax and Insurer’s TaxHospital Medicaid Provider Tax:
Funds medical coverage for an average monthly caseload of
50,000
in OHP Standard in2009-11 reaching
60,000
by June 2011 and continuing at that level through 2011-13. Thatis up from the present monthly average of 25,000.
Generates
$307
million in tax and leverages
$550
million federal funds for 2009-11
$450
million in tax; and leverages
$635
million federal funds in 2011-13
$757
million in tax revenue
$1.19
billion federal funds over the 4 years
This includes about
$40
million of one-time federal stimulus FMAP funds to be used forhealth care purposes.
Resets Hospital Fee for Service Inpatient rates to 70% up from an average rate of 53%.
All the tax paid is returned to hospitals collectively in the form of enhancedreimbursement.
Tax begins 10/01/09 and sunsets 9/30/13.
Jobs created and retained by this expansion of health care expected to be
2,100
 
Insurers Tax:
Funds medical coverage for an additional
80,000
children by the end of the 2009-11biennium.
Generates
$105
million in tax revenue; and leverages
$240
million Federal Funds 09-11
$154
tax revenue;
$350
million federal funds 11-13
$259
million in tax revenue;
$590
million federal funds in to the State over the 4 years
The Federal funds include about $10 million of one-time federal stimulus FMAP funds tobe used for health care purposes.
Provides
$5
million for community safety net coverage for non-Medicaid or CHIP eligiblechildren.
Provides
$1.4
million for School-based health centers to increase access and enrollmentof CHIP-eligible children.
Tax of 1% on premiums collected by health plans and insurers; begins 10/01/09 andsunsets 9/30/13.
Jobs created and retained by expansion of health care in this manner
1,500
 
Two programs combined:
 
140,000
people
 
$412
tax revenue;
$790
Federal Funds for 09-11
$604
tax revenue;
$985
Federal Funds for 11-13
$1.02
billion tax revenue:
$1.78
billion Federal Funds over the 4 years
 
3,600
jobs

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