As the 2026 short session winds towards its conclusion, conversations regarding budget cuts are intensifying. The Oregon Health Authority (OHA) is advancing a proposal that would dramatically reduce funding for the Medicaid Quality Incentive Program (QIP)—one of the state’s most effective tools for improving care for Oregon Health Plan (OHP) members.
OHA’s agency rebalance recommends reducing QIP funding for measurement year 2026 from 4.25% to 2%, a cut that removes approximately $210 million from Oregon’s Medicaid delivery system when factoring in the federal match.
This powerful video produced by Coalition for a Healthy Oregon explains why cuts to this program are the wrong approach for Oregonians.
The QIP payments are made to Coordinated Care Organizations, which administer Oregon’s Medicaid program. QIP is earned funding—a portion of CCO payments withheld each year and released only when providers meet clear, evidence‑based benchmarks tied to public health priorities.
Because Medicaid reimbursement rarely covers the full cost of delivering care, especially in primary care and pediatrics, QIP helps sustain the clinics that serve Medicaid members regardless of ability to pay.
By tying funding directly to outcomes, QIP enables providers to:
- Improve childhood immunization rates
- Strengthen chronic disease management
- Expand preventive care
- Enhance care coordination
- Support maternal health and healthier pregnancies
Oregon already faces shortages in primary care and behavioral health capacity, and Medicaid members often struggle to find providers accepting new patients. Performance‑based payments narrow the financial gap for clinicians who want to continue serving OHP members. Without them, clinics will reduce capacity and access for Medicaid enrollees will decline.
The Quality Incentive Program is one of Oregon’s most successful health‑policy tools. It drives outcomes, supports providers and keeps the promise of a better Medicaid system.
Now, at a time when access is already fragile, OHA’s proposed cuts would move Oregon backward. Oregon must protect QIP funding—preserving the state’s commitment to evidence‑based, value‑driven care and ensuring that every OHP member has access to the high‑quality care they deserve.
