Oregon officials brace for shutdown of Medicaid provider

PORTLAND, Ore. (AP) — Oregon health officials are preparing to transfer Portland-area Medicaid recipients to a new health care provider after their current carrier announced it would likely close.

The Oregonian/OregonLive reports the president and CEO of the current provider, FamilyCare, says the company’s chance of survival is “probably about 5 percent at the best.” He says the state’s proposed reimbursement rates for next year are too low and estimates medical costs would exceed revenues by $95 million.

Oregon Health Authority employees met with FamilyCare representatives Monday to map out the transition.

The threatened closure is not a done deal. A FamilyCare lobbyist emailed lawmakers over the weekend about the health agency’s alleged role in closing the company. Oregon Health Authority Director Patrick Allen on Monday did not rule out another contract with FamilyCare.