Provider Tax

Medicaid Currently

According to KFF, the Medicaid/CHIP program covers nearly 80 million.  KFF’s figures from March 2025, show 1.3 million covered in Oregon[1].

Existing OMA Policy

The OMA’s current policy on Provider Taxes with regard to Medicaid was adopted by the House of Delegates in 2003.  This policy, revised by the Board of Trustees in October 2013, called for the Opposition of Provider Taxes to cover the medically needy.[2]

Opposition to Provider Tax to Cover Medically Needy: OMA opposes the concept of any form of a provider tax on physicians and other providers of health care to fund in whole or in part that societal responsibility, but rather such funding be derived from a broad-based source of revenue from the public.

The Oregon Medical Association (OMA) opposes direct taxes on physicians, physician associates, and other individual health care providers as a way to fund government health care programs. While the OMA recognizes that provider taxes on hospitals, managed care organizations (MCOs), and other institutional providers—when negotiated and supported by those entities—have become a key tool for drawing down federal matching Medicaid funds, and that Oregon’s Medicaid system relies heavily on broad-based, uniform provider assessments to fund coverage for vulnerable populations, the OMA maintains that individual providers should not be expected to shoulder this financial burden.

The OMA is particularly concerned that physician practices - especially those that are independent or located in rural areas - are already financially vulnerable and should not be further strained by direct or pass-through taxes. These concerns have intensified with the passage of H.R. 1, which includes provisions that threaten to cut federal funding for Medicaid and restrict the use of provider taxes to draw down federal matching funds. If enacted, these changes could shift additional financial responsibility onto providers, jeopardizing access to care and undermining the stability of Oregon’s health care delivery system.

The recommendations from the Policy Committee serve in part to update and revise existing OMA policy and affirm the OMA’s stance on provider taxes.