Authors
A single policy proposal now before the Oregon Health Policy Board (OHPB) would cost Asante roughly $185 million a year – this represents a more significant threat to our organization’s financial stability than the Medicaid cuts in the One Big Beautiful Bill Act (H.R. 1).
On August 4, OHPB is expected to consider a proposal from OHPB’s Affordability Committee that would cap the amounts hospitals could be paid from commercial insurers at 200% of Medicare rates, with no promise that commercial insurers will decrease premiums.
Asante has submitted a formal comment letter urging OHPB to reject this proposal due to the harm it would do to hospitals, patients and communities across Oregon.
Read Asante’s full comment letter here: https://www.oregon.gov/oha/OHPB/MtgDocs/3.%20OHPB%20Public%20Comment%20August%204,%202026.pdf.
We support the goal of making health care more affordable for Oregon families, and we agree that no one should have to choose between paying for care and meeting other basic needs.
Adoption of the Affordability Committee’s proposal would not only fail to achieve that goal, but would do serious harm to the patients and communities these hospitals serve, particularly in rural and economically distressed areas of the state.
What the letter says
Our letter lays out the case in detail. At a high level, it makes a few key points:
- This would amount to a massive cut to Oregon hospital reimbursement – targeting an already financially distressed sector[1] while failing to hold the insurance industry accountable.
- Neither Medicare nor Medicaid covers the cost of care – commercial insurance is the only major payer that reimburses hospitals above cost, making up the shortfall left by government programs. Capping reimbursement at 200% of Medicare would erode that critical support, hitting rural and safety-net hospitals that depend most on commercially insured patients the hardest.
- As federal Medicaid cuts under H.R. 1 take effect – Oregon officials warn that as many as 200,000 Oregonians could lose coverage. This will translate to more uninsured patients and more uncompensated care at the very moment this proposal would cut hospital revenue.
- The consequences are predictable – reduced workforces, closed service lines and, in some cases, entire hospital closures, which would leave patients with longer travel times and worse health outcomes. It would also be a major hit to local economies, considering the difficulty of attracting residents to areas that lack basic health care services.
Put simply, this is bad policy that would measurably harm those who are most vulnerable in the name of some hypothetical savings on insurance costs for businesses and consumers.
As described in the letter:
The Affordability Committee’s own charter states that affordability initiatives should lead to “real world changes for patients and consumers to access the care they need” and should ensure that “access, quality, and equity are not compromised.”[2]
A proposal that undermines hospitals serving Oregon’s most vulnerable communities fails that test. If a policy reduces access to care, closes services or forces patients to travel hundreds of miles for treatment, neither equity, nor affordability has been improved. The burden has merely been shifted onto patients and communities least able to bear it.
These decisions have real consequences for patients, families and communities in the Rogue Valley and across Oregon. Asante remains committed to participating in these conversations and advocating for policies that protect both affordability and access to care.
We encourage you to read the full letter to understand what’s at stake.
[1] Hospital Association of Oregon. A fraying safety net: Oregon hospitals in crisis (https://oregonhospitals.org/wp-content/uploads/2026/07/2025-Oregon-Hospital-Utilization-and-Financial-Analysis_A-fraying-safety-net-Oregon-hospitals-in-crisis-5.pdf)
[2] https://www.oregon.gov/oha/HPA/HP/AccDocs/Affordability-Committee_Charter.pdf
