Oregon’s Governor John Kitzhaber received federal approval from the Centers for Medicare and Medicaid Services (CMS) for a Medicaid waiver that will restructure the way care is delivered in the Oregon Health Plan (Medicaid) through the creation of new Coordinated Care Organizations (CCOs). The waiver gives the state $1.9 billion over five years.
CCOs are local health entities that deliver care to Medicaid beneficiaries (including dual eligibles), are accountable for population health, and receive a single budget that grows at a fixed rate. The Oregon Health Authority (OHA) has been working on the new model for more than a year, and this waiver approval allows them to move toward an implementation date of July 1, 2012.
Going forward the state will be looking for ways to expand this model to other programs. More information about CCO’s can be found here.
