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Sept. 7, 2023
Media Contact: Amy Bacher, amy.bacher2@oha.oregon.gov, 503-405-5403
Health-related spending dominates Oregon household budgets
The average person in Oregon is spending nearly $8,000 per year on health care
Portland, Ore. – A new report by Oregon Health Authority (OHA) shows health care costs have increased dramatically in recent years, with Oregonians spending 22% of their household budgets on insurance premiums, prescription drugs and over-the-counter health care items in 2021. Personal spending on health care is approaching $8,000 per person in Oregon, an increase of 40% since 2013.
OHA is encouraging people to submit public comment about the impact of high health care costs for a virtual public hearing taking place Thursday, Sept. 14. The public hearing starts at 9 a.m. and the public comment period will be held at 11:40 am. Comments can be submitted in advance by emailing HealthCare.CostTarget@oha.oregon.gov. The meeting will be open to the public via Zoom. Comments will be used to guide discussions about solutions to the affordability crisis.
Key findings from the OHA report include:
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High health care costs disproportionally impact communities of color. Data show 16% of American Indian or Alaska Native people and 18% of Latinx people in Oregon report using all of their savings on medical bills, compared to 9% of white people in the state. In 2021, Middle Eastern, North African, and Latino/a/x people reported the most difficulty paying medical bills."
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Commercial health insurance premiums rose significantly. Since 2019, premium costs for single plans have increased 12% and family plans 8% in Oregon. In 2021, the average annual health insurance premium for individuals in Oregon was $7,418; for a family it was $20,916. Additionally, the cost of deductibles for individual plans rose 84% between 2013 and 2021; for family plans it rose 34%.
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Oregonians in one income bracket fared worse than others. People in Oregon who earned an income of 138% (or less) of the Federal Poverty Level (FPL) in 2021 had the most trouble paying medical bills over the previous 12 months, and they were more likely to use up their savings to pay medical bills or delay care altogether due to costs. Income at 138% FPL for an individual was $17,609 per year at the time of the survey; for a family of four it was $36,156.
The data clearly show that high health care costs lead directly to delayed care. Approximately one third of Oregon adults surveyed said they skipped needed dental care, delayed going to a doctor or avoided care due to costs. One in four adults said they skipped doses of medicine or did not fill a prescription due to the expense.
The report is published by OHA’s Sustainable Health Care Cost Growth Target Program, which was established by the Legislature in 2019. The program monitors health care costs in the state and works with health care systems, health care plans, consumer advocates and others to try to ensure that growth is in-line with wages, inflation and other economic indicators. The program sets a statewide target for the growth of annual per-person health care spending—a goal determined in collaboration with representatives of the health care system, that accounts for the impact of COVID-19 and historically high inflation.
OHA will continue to monitor and publish reports on health care cost increases and factors driving these trends to bring transparency to conversations about reining in unsustainable spending. Additional information can be found on the Sustainable Health Care Cost Growth Target web page.
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