Department of Human Services

Office of the Director

Theodore R. Kulongoski, Governor
500 Summer Street NE, E-15
Salem, OR 97301-1097
November 9, 2009
(503) 945-5944
Fax: (503) 378-2897
TTY: (503) 947-5330
Eric Fruits

Portland, OR

Mr. 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 Justin
Dickerson 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 in
the 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 on
the analysis of the impacts of the Governor’s Recommended Budget and a comparable
analysis 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, HB

2116 will provide approximately 3,600 new and permanent jobs when fully
implemented.
The jobs prediction comes from using a software program called IMPLAN (IMpact
Analysis for PLANing), which is a standard and widely used economic analysis tool. The
IMPLAN model is conservative and straightforward in that it measures the economic
impact of new investments, not revenue that are already here. For HB 2116, the new
investments would be the increased federal dollars. This avoids double counting state
revenues that otherwise may have been spent elsewhere in the economy. This model
also does not account for additional savings and growth in the economy that will come
from improving the health of this population, such as the reduced health care costs that
come with preventative care or increased productivity due to fewer missed days at
work.
Therefore, based on the new federal dollars brought to Oregon by HB 2116, the
conservative prediction is that 3,600 jobs will be created due to direct or indirect
spending, 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 require
staff, supplies and services in every region of Oregon.

“Assisting People to Become Independent, Healthy and Safe”

An Equal Opportunity Employer
Additionally, I am providing the full document from which this summary was taken. If I can
provide additional information, please feel free to contact me.

Thank you,

Keely L. West
Public Records Officer
Oregon 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 Tax
Hospital Medicaid Provider Tax:
• Funds medical coverage for an average monthly caseload of 50,000 in OHP Standard in
2009-11 reaching 60,000 by June 2011 and continuing at that level through 2011-13. That
is 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 for
health 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 enhanced
reimbursement.
• 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 2009-11
biennium.
• 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 to
be used for health care purposes.
• Provides $5 million for community safety net coverage for non-Medicaid or CHIP eligible
children.
• Provides $1.4 million for School-based health centers to increase access and enrollment
of CHIP-eligible children.
• Tax of 1% on premiums collected by health plans and insurers; begins 10/01/09 and
sunsets 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
Jobs Creation Analysis
As noted above, in addition to expanding health care coverage to children and adults in
Oregon, HB 2116 will provide approximately 3,600 new and permanent jobs when fully
implemented.

The jobs prediction comes from using a software program called IMPLAN (IMpact Analysis for
PLANing), which is a standard and widely used economic analysis tool. The IMPLAN model is
conservative and straightforward in that it measures the economic impact of new investments,
not revenue that are already here. For HB 2116, the new investments would be the increased
federal dollars. This avoids double counting state revenues that otherwise may have been
spent elsewhere in the economy. This model also does not account for additional savings and
growth in the economy that will come from improving the health of this population, such as the
reduced health care costs that come with preventative care or increased productivity due to
fewer missed days at work.

Therefore, based on the new federal dollars brought to Oregon by HB 2116, the conservative
prediction is that 3,600 jobs will be created due to direct or indirect spending, 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 require staff, supplies and services in every
region of Oregon.