Oregon Lawmakers Announce Health Care Expansion

BRAD CAIN

SALEM, Ore. (AP) — The Oregon Legislature's majority Democrats announced a deal with the medical industry that they say will bring state health insurance coverage to 80,000 more children and at least 50,000 low-income adults.

The proposal unveiled Thursday calls for raising taxes on hospital revenues and establishing a new tax on health insurance premiums to pay for the expansion.

Democratic lawmakers and Gov. Ted Kulongoski said the deal provides a way to expand health coverage at a time when the economy is struggling.

"With unemployment at record levels, more Oregonians than ever are in need of the health care coverage that this agreement will provide," said Senate President Peter Courtney.

The House and Senate Democrats say they are ready to use their "supermajority" in the Legislature to enact those new taxes on health insurers and hospitals.

Republicans say the taxes, and the Democrats' plan to create a new state office to guide an overhaul of Oregon's health care industry, should be placed on a statewide ballot.