Oregon is one step closer to universal health care. Just last week, the Oregon Health Fund Board unanimously agreed to overhaul the state’s current health care system. Their goal is to provide health insurance coverage to all state residents by 2019.

The plan calls for a tax on hospitals and health insurers, and increased taxes on alcohol and cigarettes. The money will be used for two main purposes: to extend coverage to nearly 100,000 uninsured children and 100,000 low-income uninsured adults. They also hope to start providing coverage for mental health services, and plan to sponsor educational health programs on preventing chronic diseases.

The new health plan also calls for drastic regulation of hospital prices and the administrative costs of insurance companies. The state will be helping hospitals and doctors convert to electronic health records, which should improve efficiency and reduce costs. Eventually, all Oregon state residents will be required to have health insurance, and insurance companies will no longer be able to deny coverage for pre-existing health conditions.

The creators of the plan estimate it will cost between $5 million and $7 million to administer the plan, but that it would produce $10 billion in savings over the next 10 years. The Oregon Health Fund Board will be delivering the plan to the Governor and legislative leaders this week for further review. We’ll keep an ear out for any news from Oregon regarding the plan, and we’ll certainly keep you updated one way or another.

For more information on the proposed plan, please visit the Oregon Health Fund Board. This Oregon health site provides an array of interesting information, including what the Health Fund Board does, how it works, and details on their health care reform plans.