Oregon RAND 2017

A Comprehensive Assessment of Four Options for Financing Health Care Delivery in Oregon

By: RAND Corporation
Authors: Chapin White et al.
Published: 2017
Financed by: Oregon Health Authority
Legislation analyzed:

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Health Care Expenditures

Under the Single Payer option, health care expenditures are approximately equal to the Status Quo (see Figure 5.4), but that near-equivalence reflects the net effect of two opposing factors. First, the expansion in coverage and the reduction in out-of-pocket costs in Single Payer would largely eliminate financial barriers to accessing care, leading more patients to seek treatment. By itself, that increase in patient demand would increase expenditures by around 12 percent under the Single Payer option. However, payment rates for hospitals, physicians, and other clinical services under Single Payer would be reduced by 10 percent on average relative to the Status Quo. That reduction in payment rates directly reduces expenditures, which would constrain the supply of health care providers and the quantity of services provided.