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Oregon voters pass Measure 101, approve new taxes for Medicaid costs

Measure 101 asked voters to uphold a temporary tax on health care providers.

Oregon voters have approved taxes on hospitals, health insurers and managed care companies to address rising Medicaid costs.

The single-issue election Tuesday drew national attention because it gave voters -- and not lawmakers -- the final say on how to fund increasing health care costs.

The plan is a short-term fix for health care funding that will generate between $210 million and $320 million in revenue over two years.

Measure 101 creates a 0.7 percent tax on some hospitals and a 1.5 percent tax on the gross health insurance premiums and on managed care organizations.

Oregon aggressively expanded its Medicaid rolls under the Affordable Care Act. Now, just 5 percent of its population is uninsured.

Lawmakers must still come up with a long-term funding plan for the more than 350,000 people added to Medicaid and an overall increase in health care expenses.

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