Governor Unveils Plan to Provide Affordable Health Coverage For All Kids

Working families will receive children’s coverage under Governor’s Healthy Kids Plan.

Oregon Governor Ted Kulongoski in a Salem elementary classroom Photo by: Tim King

(SALEM) - Oregon Kulongoski unveiled Monday the details of his plan to provide health care coverage for all 117,000 uninsured children in Oregon, while expanding school-based health care and on-site dental programs at schools throughout the state.

"My Healthy Kids Plan ensures that all children receive health care, including dental and mental health benefits, and that all working families can provide health care for their children," the Governor said. "Oregon has 117,000 children who will get help under this plan -- more than all the children now enrolled in the school districts of Portland, Eugene, Coos Bay, Medford, Klamath Falls, Bend and Pendleton combined."

"The plan will also cover middle-class families who earn too much to qualify for assistance now, but not enough to pay for insurance coverage," the Governor said.

Children in a family of four with incomes as high as $70,000 a year will be eligible for subsidized health coverage under the Governor’s program. Those with higher incomes will have the option of buying coverage through the Oregon Health Plan for comprehensive medical, dental and vision services, including prescription drugs and mental health services.

"Every day we put off solving this problem, thousands of kids across Oregon are more likely to struggle in school, and miss out on opportunities to play, learn and thrive," the Governor said. "These are opportunities all children should have."

The Governor's plan consists of the following components.

Expand the coverage and benefits now offered at no cost by the Oregon Health Plan (OHP) to children in families with incomes up to 200 percent of the Federal Poverty Level (FPL), which is $40,000 per year for a family of four.

Provide a further expansion of coverage by offering access to a pooled private insurance plan with OHP benefits and subsidized premium rates for children in families up to 350 percent of FPL, which is $70,000 a year for a family of four.

Provide access to the pooled private insurance plan with OHP benefits for children in families with incomes above 350 percent of FPL.

Create a streamlined application process and issue a common insurance card for all children covered by the Healthy Kids Program.

Increase the number of school-based health centers and expand the state's mobile dental clinics and cavity prevention treatments for children throughout Oregon.

Funding for the Healthy Kids Plan will come from equalizing Oregon's tobacco tax rates with Washington State's tobacco tax rates, plus a 60-40 match of the resulting new revenue by the federal government.

"In order to cover all Oregon children, we’ll bring our tobacco tax in line with our neighbors in Washington State," the Governor declared. "In doing so, we’ll gain $1.50 in federal matching funds for every new state dollar we invest in kids’ health."

All health plans offered under Healthy Kids will be affordable for Oregon families of all income levels. For example, for children in families of four:

With incomes below $40,000 a year, there will be no premiums for coverage and no co-pays for services.

With incomes between $40,000 and $70,000 per year, there will be premiums for coverage ranging from $25 to $80 per month.

With incomes above $70,000 per year, there will be unsubsidized premiums for coverage of $150-$160 per month.

"We’re the adults in the world," the Governor said. "It is our responsibility to look out for the health and well being of our children—including providing quality health care so each child comes to school ready to learn and succeed."