06/11/2008

By SARAH SKIDMORE  / Associated Press

Gov. Ted Kulongoski told a state task force that health care changes in Oregon should begin with covering uninsured kids and low-income adults, and with revisiting the idea of a cigarette tax.

The governor met Wednesday with the Oregon Health Fund Board to discuss the state's health care priorities for the 2009 legislative session.

The board, created by the Legislature in 2007, is charged with developing a plan to ensure accessible and affordable health care for all Oregonians.

It is halfway through its work and met with the governor for an update.

Kulongoski and the board say changes won't happen all at once.

He said the the most "urgent and compelling needs for expanding coverage" are among children and adults with low incomes.

Kulongoski reiterated his call for higher tobacco taxes to help fund part of children's health insurance coverage, a move voters defeated in November when it was proposed as a constitutional amendment. The tobacco industry financed a record-shattering $12 million TV blitz to oppose it.

Kulongoski said most Oregonians support an expansion of children's health care but were heavily influenced by the advertising.

He urged the board to find other potential sources of funding to expand coverage for children and low-income adults.

He also urged it to restructure taxes on some health care providers, which is necessary under new requirements to maximize the amount of matching money the state gets from the federal government for the Oregon Health Plan.

In terms of health care cost containment, he asked the board bring its top five ideas that can be achieved in the next two years.

"This is your challenge and mine," he said in a letter to the board. "We cannot expect to expand and sustain health care coverage if we don't control and reduce health care costs. We have to find ways to do both."

Among his other requests for 2009 was a clear statement that any plans must include a focus on both physical and mental health.

"You cannot have a healthy population without having both," he said at the meeting.

While the details are still in development, the board and the governor agree that the process will remain focused on the intertwined challenges of reducing costs and expanding access.

"I think we're all pretty aligned," said Eileen Brady, vice chairwoman of the board and co-owner of New Seasons Market. "I'm looking forward to a productive session."

The board has held town hall discussions around the state. It is expected to have a draft plan by August and a final set of recommendations to the governor and the Legislature by November.

Members of the board were supportive of the governor's requests and goals. The sentiment was echoed by legislators who will be responsible for seeing the concepts through.

"It was music to my ears," said Sen. Ben Westlund, a Bend Democrat and candidate for state treasurer.

Westlund said the governor's focus on not just expanding coverage but also on containing costs supports the aim of the Legislature when it created the Health Fund Board.

"Let's not throw any more money at a broken system," Westlund said.