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Oregon Increases Incentive Payments For CCOs

The state has increased the size of incentive payments it uses to encourage coordinated care organizations to reduce costs and improve health care.

Under the coordinated health care model, which provides health insurance-like coverage to Medicaid recipients, the Oregon Health Authority holds back a slice of payments every month to put in a incentives pool. Then at the end of the year, it rewards the CCOs that meet certain health goals.

CCO's that meet fewer goals get less money.

The aim is to create a system where CCOs are financially motivated to improve the health of patients, rather than order more medical services.

Lori Coyner of the Oregon Health Authority says the incentive payment will go from 2 percent to 3 percent this year.

"The expectation is that across time we will increasingly pay for outcomes and pay less for the old method of fee for service," she said.

Because so many more Oregonians are on Medicaid this year, the overall incentive payment pool is expected to more than double.

Copyright 2014 Oregon Public Broadcasting