Cover Oregon accounting error affects 775
Published 12:00 am Tuesday, September 16, 2014
SALEM — An accounting error that gave too much money to people receiving a federal tax credit for insurance premiums affects 775 of the 42,367 people getting the credit, the executive director of Cover Oregon told lawmakers Monday.
Most customers affected were incorrectly given an extra $2 or less per month, but some will owe more than $100 for every month they received the credit, Aaron Patnode told House and Senate leaders during the first of three days of hearings known as Legislative Days.
The details were the first since Cover Oregon announced the error two weeks ago and came as somewhat good news, as the error was expected to be larger.
“I just want to underscore the fact that we’ve been appropriately cautious with our evaluation of this error,” Patnode said.
Cover Oregon’s website was supposed to allow people to shop and compare insurance prices before enrolling, all online. After the website’s failure, the state decided Oregonians would use the federal exchange, HealthCare.gov, to buy insurance.
Cover Oregon is still studying the remaining 3,361 individuals and families who received the credit to see how many will owe money to the federal government. In total, the error will cost the 775 already identified about $100,000, Patnode said.
The tax credits are available for essential health benefits for people making up to 400 percent of the federal poverty level.
Patnode’s update came amid calls from both parties that Cover Oregon be dissolved into the Oregon Health Authority next year.
“The Oregon Health Authority can handle anything Cover Oregon currently does,” said Sen. Tim Knopp, R-Bend, who is on the interim Senate health care committee. “I’m hopeful that other legislators will join in bipartisan legislation to end Cover Oregon as soon as possible.”
The issue flared up two weeks ago as Gov. John Kitzhaber said the safest thing to do was to move Cover Oregon’s functions to other state agencies. Senate President Peter Courtney, D-Salem, followed suit and promised legislation in 2015.
Republicans say that’s not soon enough and have called for a special session, which Democrats say isn’t likely to happen.
Cover Oregon’s budget
Patnode also on Monday told the House Interim Committee on Health Care of his plans for Cover Oregon next year.
Committee Chairman Mitch Greenlick, D-Portland, was surprised officials weren’t further along with budgeting for next year after Patnode said Cover Oregon was planning to get rid of 72 of its 117 employees.
“It seems to me to be pretty late to be doing some of the things you’re talking about doing,” Greenlick said, adding that there’s a risk that Cover Oregon’s budget wouldn’t be approved.
Cover Oregon is working on its budget, which a finance and audit committee will review before sending to the Cover Oregon board for a vote in December.
— Reporter: 406-589-4347, tanderson@bendbulletin.com