Oregon Maintains Medicaid Coverage for Undocumented Immigrants Amid Divergent State Policies

Oregon Governor Tina Kotek has expressed reluctance to adopt California's recent proposal to reduce healthcare spending for undocumented immigrants. California Governor Gavin Newsom introduced a plan to halt new enrollments of undocumented immigrants in Medi-Cal in January and impose a $100 monthly fee for coverage starting in 2027. This change would affect 1.6 million undocumented immigrants currently receiving healthcare coverage in California.

Meanwhile, federal House Republicans have proposed reducing Medicaid payments to states like California and Oregon that provide healthcare coverage to undocumented immigrants. Oregon's "Cover All People" law, enacted in 2021, mandates free healthcare access to all undocumented immigrants, with the program now covering over 100,000 individuals through "Healthier Oregon."

Despite Oregon often aligning with California on policy, the two states diverge on this issue largely because of differing budget conditions. Oregon’s economic forecast remains positive for its two-year budget, unlike California’s significant $12 billion deficit. Governor Kotek emphasized making decisions based on Oregon's financial status and not reacting prematurely to federal hostility toward Medicaid or undocumented immigrant coverage.

Kotek also highlighted Oregon's longstanding policy philosophy favoring insurance coverage and preventive care as cost-effective, noting that uninsured individuals often utilize emergency care, which shifts costs to hospitals or insured patients. Insuring everyone helps control overall healthcare costs and benefits the state financially.

Oregon's approach underscores the ongoing debates among states and at the federal level about managing Medicaid funding and healthcare access for undocumented immigrants amid budget constraints and political pressures.