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<text id=91TT2607>
<title>
Nov. 25, 1991: Oregon's Value Judgment
</title>
<history>
TIME--The Weekly Newsmagazine--1991
Nov. 25, 1991 10 Ways to Cure The Health Care Mess
</history>
<article>
<source>Time Magazine</source>
<hdr>
NATION, Page 37
COVER STORY
Oregon's Value Judgment
</hdr><body>
<p> Virtually every state in the U.S. is struggling to find ways
to seal up increasingly leaky health-care systems. Hawaii was
one of the first to strive for universal coverage and now reaches
98% of its residents. Florida, New York, Michigan, Maine and
Wisconsin subsidize health-insurance coverage for some of their
poorest citizens. South Carolina sponsors house calls for
pregnant women. Alabama uses its school clinics to provide
prenatal care. Despite this kaleidoscope of experiments, no one
state can claim to have solved all its problems.
</p>
<p> The newest and broadest attempt to improve access and
contain costs is taking place in Oregon. The state is asking the
U.S. government to approve changes in Medicaid rules to provide
a limited list of medical services to all people below the
poverty level, regardless of their current Medicaid status. A
companion law in Oregon's comprehensive health plan requires all
employers to provide health insurance for full-time employees
and obliges insurance companies to renew those policies without
excluding individuals considered too risky. The state also
guarantees that doctors and hospitals are reimbursed for their
services but makes them justify their purchases of costly
medical diagnostic equipment.
</p>
<p> The centerpiece and most controversial feature of the plan
is a list of 709 medical conditions and their treatments,
ranked according to their seriousness and the likelihood that
treatment will restore the patient to long-term good health.
Actuaries estimate that state and federal Medicaid money will
pay for treatment of everyone suffering from the first 587
conditions on the list.
</p>
<p> In effect, Oregon is promising to provide universal
coverage in exchange for a system of financial triage. A child
will get a liver transplant; a chronic alcoholic will not. An
AIDS sufferer will get treatment in the early stages of his
illness but in the terminal stages will get only "comfort care."
The plan would not pay for so-called heroic measures, such as
expensive life support for babies born after less than 23 weeks
of gestation and weighing less than 500 g (1.1 lbs.). Nor will
it pay for self-curing ailments--now covered--like the
common cold, food poisoning, sprains and simple diaper rash.
And, of course, the patient who needs spinal disc surgery, No.
588 on the list, may be out of luck.
</p>
<p> Oregon's list is not without critics. The Washington-based
Children's Defense Fund is actively lobbying against the
Medicaid waiver needed to put the plan into effect. Says CDF
director Sara Rosenbaum: "We don't understand why the state's
poorest children have to give up literally life-and-death
benefits for the sake of this social experiment."
</p>
<p> But many Oregonians are in favor of it. The pecking order
of conditions was arrived at with the help of marathon
discussion sessions that were organized by Oregon Health
Decisions, a public interest group, and held in each of the
state's 36 counties. But agreement on values does not guarantee
fiscal manageability. "We're all together on this, but for many
different reasons," says Amy Klare of the Oregon AFL-CIO.
"Business will fall off if the plan's too rich. We'll fall out
if the plan's too weak." Ellen Pinney, executive director of the
Oregon Health Action Campaign, wonders whether coverage will be
maintained at the initial levels. "Over time," she contends,
"the ability of the state to fund an adequate plan will be
constrained."
</p>
<p> State officials admit that some changes are certain to
take place in 1993, when treatments for mental health and
chemical dependency are added, as well as coverage for senior
citizens and the disabled. Then somebody with condition No. 587
may no longer qualify. But if the plan works, virtually every
Oregonian will be assured decent primary care, and that is a
goal with which every community could live.
</p>
<p>By Edwin M. Reingold/Salem.
</p>
</body></article>
</text>