Measure 118, “the Oregon Rebate,” on Oregon’s ballot this November, would have a significant negative impact on The Oregon Clinic’s ability to care for patients. While it may look like Oregonians will be getting free money, in reality it will cost Oregonians much more than they will receive. Our executive team and Board of Directors have discussed this measure at length with other independent medical providers and have decided to speak out against this measure to help educate voters about its potential impact.
Oregon businesses, including independent medical practices, would be devastated by Measure 118. Measure 118 would impose a $6.8 billion tax on sales, which businesses would have to pay even if they earned only a small profit – or no profit at all. While the measure exempts nonprofit hospitals from its costly new tax, it does not exempt private medical practices like The Oregon Clinic.
We are concerned this measure would end up hurting low-income communities and reducing access to health care. Measure 118 would increase our costs significantly. While non-medical businesses can pass this increased cost on to their customers, this tax bill would force us, and similar medical providers, to manage this impact in a different way, most likely through reducing the number of Medicare and Medicaid patients we see. Already, these government programs usually don’t cover the full cost of patient care—most Medicare and Medicaid visits cost The Oregon Clinic more than we get reimbursed. Measure 118 would increase the losses we experience caring for these patients, leading to further restrictions on the number patients that clinics like ours can see. Ultimately, Measure 118’s massive tax would compromise our ability to treat patients in Oregon, especially those in low-income communities.
The healthcare industry is already struggling to see the number of patients we need to care for as quickly as we’d all like to. Measure 118 would also limit our ability to hire more staff, further exacerbating this problem.
Reducing care for low-income people is just one of Measure 118’s many regressive effects. The measure would raise the cost of nearly everything Oregonians buy, including food, clothing and even medicine.
The Oregon Clinic is not alone in opposing this measure. Opponents of Measure 118 come from all parts of the political spectrum, including organizations, businesses and politicians from across the state.
Measure 118’s backers hope that voters will be so dazzled by the prospect of receiving “free money” that they’ll ignore its other effects, including higher prices and decreased access to health care. We hope that Oregonians will do their homework and better understand how this measure will impact communities and individuals across the state.