Oregon Lawmakers Announce Health Care Expansion

"As Oregonians lose health insurance, the Democrats' response is to raise taxes and increase the costs of health care," said Rep. Ron Maurer, R-Grants Pass.

However, Democrats said Oregon stands to recoup almost $1 billion in federal Medicaid funds in the next two years by raising $400 million from the new taxes and assessments.

The tax on health insurers will come to 1 percent of their premiums, which will provide health coverage to up to 80,000 children who lack medical coverage.

The hospital tax rate is to be set by the director of the Department of Human Services. It would increase the number of low-income adults who could enroll in the Oregon Health Plan.

Kulongoski, whose office has been involved in the negotiations with legislators and the medical industry, said the deal is "one of the most significant measures before the Legislature this session."

"Access to affordable health is one way the state helps Oregonians, in good and bad economic times," the governor said. "Healthy children go to school ready to learn. Healthy adults are more productive members of society."