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July 2011 St@teside

Oregon Passes Legislation Establishing Coordinated Care Organizations

On July 1, Oregon Governor John Kitzhaber signed House Bill 3650 to establish Coordinated Care Organizations (CCOs) for recipients of the Oregon Health Plan (which includes Medicaid and other state-based public insurance programs). A CCO will be a local entity that receives a global budget for management of prevention, physical health services, mental health, and dental care. The goal of the legislation is to hold down costs while improving the value of services provided. CCOs will have the freedom to invest in the most cost-effective prevention and treatment strategies. If savings are achieved and quality metrics are met, providers in the CCO can share in the savings.

Oregon’s legislation lays out a broad strategy for CCOs and also establishes four workgroups that will make detailed recommendations to the legislature in 2012. The legislature will then be required to act on the recommendations and make the final policy decisions that will enable implementation of the CCOs. The target for implementing the first CCO is July 2012. The workgroups will assess:

  • CCO criteria;
  • Global budget methodology;
  • Outcomes, quality, and efficiency metrics; and
  • Medicare-Medicaid integration of care and services.

For more information, visit the Oregon Health Policy Board website.