Basin Business 1 September summit features small-town expert — Page 3 June 2016 KLAMATH BASIN Business A publication of the Herald & News Chamber: www.klamath.org Chamber director moves to KCC — Page 4 Farmers Market opens 16th year — Page 5 Klamath County Chamber of Commerce hosts free training for local residents in Superfund cleanup. Here, a participant tries on a haz-mat suit. The program aims to certify the residents to work on the North Ridge Estates cleanup, as well as start them on a career path to environmental remediation. Story on Page 2 Rural business forum returns to Klamath Freedom Celebration planning in the works — Page 6 S S uperfund uperfund training training
Transcript
Basin Business Thursday, June 23, 2016, Herald and News 1
September summit features small-town
expert— Page 3
June
201
6 KLAMATH BASIN
Business
A publication of the Herald & News Chamber: www.klamath.org
Chamber director moves to KCC
— Page 4
Farmers Market opens 16th year
— Page 5
Klamath County Chamber of Commerce hosts free training for local residents in Superfund cleanup. Here, a participant tries on a haz-mat suit. The program aims to certify the residents to work on the North Ridge Estates cleanup, as well as start them on a career path to environmental remediation.Story on Page 2
Rural business forum returns
to Klamath
Freedom Celebration
planning in the works — Page 6
S S uperfund uperfund trainingtraining
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Basin Business2 Thursday, June 23, 2016, Herald and News
Suiting upNorth Ridge cleanup training underway
By CHRYSTAL VAUGHN
EPA liaison
The Klamath County Chamber of Commerce has been hosting a free, three-week training pro-gram to prepare Klamath County residents for careers in environmental cleanup. About 20 people are participating in the program.
The U.S. Environmental Protection Agency (EPA) offered a Superfund Job Training Initia-
tive aimed at certifying local residents to work at the North Ridge Estates Superfund site – off Old Fort Road – or other environmental cleanup sites.
“It’s an entry level position, but those certi-fications they’ll get will make them more employ-able anywhere they go,” said Klamath County Chamber Program and Marketing Coordinator Heather Tramp.
The Superfund Job Training Initiative is known fondly among the participants as Super JTI. Those selected for
the program have experienced a course of train-ing that has set them on a trajectory for success-ful, sustainable employment in environmental remediation.
Participants have been given valuable employ-ment skills that reach beyond the workforce dur-ing the week long initial pre-employment skills training portion of the program. This portion of the course training focused on valuing diversity, building rapport, and improving communication skills. The first week ended with each participant successfully earning their flagging certification.
The second week of training was the Hazard-ous Waste Operations and Emergency Response (HAZWOPER) portion of the training program. This is the “meat and potatoes” of the three-week initiative, comprised of a full 40 hours of training. Participants received detailed and comprehensive information, including hands-on instruction in the maintenance and safe use of the HAZWOPER suits and gear.
The last week of training for the Super JTI
program will include OSHA certification, and certification in CPR/First Aid as well as Asbestos Mainte-nance and Removal training. The partici-pants are gearing up in preparedness for potential employment in remediation of the contaminated North Ridge Estates Super-fund site.
Graduation for the participants will not only celebrate their readiness for the task ahead but will also highlight the success of their efforts and the pro-gram's effectiveness.
According to EPA spokeswoman Judy Smith, wages paid by construc-tion managers to trained workers will be specific to Klamath County.
“(They will) range from $10.15 to $43.42, depending on the activity that person is performing,” Smith said. “The wages for the positions expected on this project are at the lower end of that range.”
The $30 million cleanup planned for North Ridge Estates, a housing development east of Klamath Falls with asbestos-containing debris, is expected to start in mid or late July, according to Smith. The cleanup will occur in three phases over three years, project managers said.
Public meeting June 29
The EPA, Region 10, will begin the cleanup of the North Ridge Estates Super-fund site this summer.
On Wednesday, June 29, the EPA is hosting a meeting to discuss the work that will take place, to learn more about what to expect dur-ing construction and how updates will be provided to property owners.
The forum will be from 6 to 7:30 p.m. at the Klamath County Library, 126 South 3rd St. in Klamath Falls.
Photos courtesy
of Chrystal Vaughn
Klamath County residents are trained for careers in environmental cleanup through a free program host-ed by the Chamber of Commerce. The training aims to certify local resi-dents to work at the North Ridge Estates Superfund site.
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Basin Business Thursday, June 23, 2016, Herald and News 3
Business forum features small-town expertChamber press release
The Klamath County Chamber of Commerce will once again hold its Rural Business and Inno-vation Summit in Klamath Falls Sept. 14 and 15.
Keynote speaker will be Becky McCray of Okla-homa, who talks about rural issues and writes a blog about rural businesses
“Yes, I really do own a small town liquor store and a cattle ranch. It gives me a down-to-earth perspective,” McCray writes on her website: www.beckymccray.com/
“Because I’m a business owner in a small town and because I care about rural towns, I watch the global trends in the economy, technology and society. Then I give you the practical steps you can implement right now to shape the future of your town.”
“These big trends give me a positive view of rural towns, but I don’t paint an unrealistic pic-ture of small towns, pretending that everything is quaint and charming. We have issues, and we have assets. The same things that make rural places challenging can be turned into positives,” she said.
“You know how. There’s a lot of rural wisdom inside you; it’s just been covered up with the busy-ness of everyday life,” she writes.
“You know you have to start with tiny, easy-to-do steps. That’s how we get things moving. You know that connecting people with each other is the essence of community. And you know who you
can rely on to get started. You’ll draw more people to you as you go.”
It may feel like a refresher course in common sense, but these are the bedrock principles that small-town business owners have survived with for years.
“It can be exciting to realize that your town has
a future and that you can shape it. Excitement like that draws more people to you. You have rea-son to overlook the naysayers. You have reason to hope.”
McCray is a small town business owner, and has been since she started her first business ven-ture in junior high school. She and her husband Joe own a retail liquor store and a cattle ranch in Northwest Oklahoma. She shares insights drawn from her real-world experience at her highly-ranked website, Small Biz Survival, and in her award-winning book, Small Town Rules, co-authored with Chicago entrepreneur Barry Moltz.
She also shares her strategies as a speaker in the U.S., Canada, the U.K. and Australia. Her perspective is often featured in a wide range of media, from The New York Times to The High Plains Journal.
McCray’s wide experience includes work as a small town city administrator, a non-profit execu-tive, an antiques store owner, and a teacher of computer and business classes. In 2004, she was an unsuccessful candidate for the Oklahoma House of Representatives, losing by just one vote per precinct. She believes one learns from both our successes and our failures.
She makes her home base in Hopeton, Okla., a community of 30 people. Her goal is to deliver practical steps you can put into action right away to shape the future of a town.
For more details on the event and to register. call Heather Tramp at 541-884-5193.
From a press releaseThrough its Strategic Relations
Committee, the Klamath County Economic Development Association (KCEDA) contributed to an effort that encouraged the sale of 200 acres in the Gilchrist State Forest for a necessary wastewater treatment system in Crescent.
The transaction, which occurred on June 8, involved the Oregon Department of Forestry selling the acreage to the Crescent Sanitary District.
In March, KCEDA executive direc-tor Greg O’Sullivan sent a letter of support to the Crescent Sanity Dis-trict that read: “We strongly encour-age the Oregon Department of For-estry to consider a sale or transfer of property to the district to accom-modate the system. The value of this infrastructure investment is several
fold.” The letter went on to list the fol-
lowing benefits of such a transfer: ■ Allowing 20 or more local busi-
nesses the possibility of expansion■ Decreased nitrate groundwater
pollution in and around Crescent■ A safer, healthier community
leading to a more stable economy for Klamath County
In a letter from the office of Gov. Kate Brown, Oregon Regional Solu-tions Coordinator Annette Liebe thanked those who supported the project at the public level.
“This decision marks a major milestone in our partnership to address public and environmental health concerns and support future economic and community develop-ment,” Liebe wrote. “Many thanks to everyone in the accomplishment of this milestone … We look forward to
continuing the partnership to bring this project across the finish line.”
O’Sullivan said that his agency played one part in a larger effort to advance a project that will help the entire county.
“KCEDA is always available to help Klamath County’s cities, whether it’s at the local or state level,” he said. “We’re excited that this project will continue moving forward in Crescent.”
Oklahoma businesswoman Becky McCray is the keynote speaker for the Rural Business and Innovation Summit, sponsored by the Klamath County Chamber of Commerce in September.
KCEDA applauds sale of Gilchrist acreage to Crescent sanitary department
2640 Biehn St. • 541.884.3148 • www.klamatheyecenter.com
Jennifer Sparks, O.D.Optometrist
Edwin Tuhy, O.D.Optometrist
Scott Stevens, M.D.Physician/ Surgeon of the Eye
Mark Fay, M.D.Physician/ Surgeon of the Eye
New Patients Welcome
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Basin Business4 Thursday, June 23, 2016, Herald and News
Chamber director moving to KCC job
Farmers Market opens 16th year
By HOLLY DILLEMUTHH&N Staff Reporter
Charles “Chip” Massie, executive director of the Klamath County Chamber of Commerce, has accepted a position as a workforce development director with Klamath Community College.
Massie made the announcement on Friday and said he is leaving the chamber in August to serve in the new role. He served approximately eight to nine years as the chamber director, and served additionally prior to that time as a member of the board of directors.
“It fits my passion,” Massie said.
Massie has worked closely on workforce development with KCC, and serves as chairman of the East Cascades Workforce Investment Board.
He emphasized a desire to help promote programs and partnerships that aim to fill the gaps for businesses locally when it comes to the workforce.
“I’ve always had an interest in it (workforce devel-opment),” Massie said.
“This seemed like an opportunity to really have a direct impact.”
Roberto Gutierrez, president of KCC, praised Massie for his expertise and welcomes him to the institution.
“KCC is very fortunate to have someone with Chip’s experience leading the workforce effort,” Gutierrez said, adding that the community college is placing a high priority on workforce development.
Massie thanked chamber members, many of whom he has worked with throughout his tenure with the organization.
“It’s been probably one of the most enjoyable expe-riences of my life,” Massie said.
“The organization is in good hands going for-ward,” he added. “There is going to be a search for an executive director.”
Todd Andres, president of the Chamber’s board of directors, expressed well wishes to Massie, despite “bittersweet” sentiments.
“We truly wish Chip all the best,” Andres said.“He took over our organization when it needed
some leadership and he filled that gap greatly.”
Massie
H&N photos by Kevin Hume
TOP: Bluegrass band Rainy and the Rattlesnakes perform at the Celebrate the Blues Summer Kickoff event in downtown Klamath Falls June 16.
ABOVE: Mary Garcia holds her 20-month-old daughter Rosario Murillo during a ride on one of the ponies of the Tumbleweed Pony Company at the Celebrate the Blues Summer Kickoff event June 16
Summer Kickoff
Celebrate the Blues deemed a success
The chilly weather wasn’t enough to stop hun-dreds of people from turn-ing out to Celebrate the Blues at the Summer Kick-off event on Thursday, June 16, in downtown Klamath Falls.
By 6 p.m., Main Street was packed with vendors showing off everything from tours of a helicopter and handmade soaps to pony rides and local food truck delicacies.
Attendees rocked out to bluegrass bands and the local blues sextet Blues Outlet as they ate and sipped the local fare.
Kendall Bell, presi-dent of the Klamath Falls Downtown Association, said she was pleased with the turnout, considering the day’s unpredictable weather.
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Basin Business Thursday, June 23, 2016, Herald and News 5
Farmers Market opens 16th year
SALEM — The Secretary of State Audits Division released its third, biennial financial condition review of Oregon’s counties recently, highlighting four counties that may need further monitoring based upon 10 financial, economic, and demographic indicators.
The four counties identified by the auditors are Curry, Douglas, Josephine, and Polk. This is down from nine counties identified in the 2014 report. Klamath and Lake counties were not men-tioned in either report.
“Overall, the financial condition of Oregon’s counties in the past two years has improved,” said Secretary of State Jeanne P. Atkins. “Our review found that a recovering economy and some strategic cost-cutting measures by our local gov-ernments has decreased the number of counties on our watch list from nine to four. This is encouraging news.”
Auditors used information from each county’s annual financial reports and other data from state and federal resources to identify financial concerns, and conducted in-depth analysis of those counties that may be at a higher risk of distress. The report found that the decline in federal for-est revenue continues to be a major barrier to the recovery of some counties. The report includes responses from public officials at the four named counties on steps they have taken to address their financial situation.
“Policy makers should use this report to identify and help the counties hardest hit by reduced fed-eral forest dollars and low permanent property tax rates,” said Atkins. The indicators used to assess the financial condition of Oregon’s counties include:
■ Local Support■ Timber Revenue Dependence
■ Debt Burden■ Liquidity■ Fund Balance ■ Retirement Benefit Obligation■ Public Safety■ Personal Income■ Population Trends■ UnemploymentUnlike performance audits released by the
Audits Division, this report is an informational report and does not make recommendations for improvements to county officials or state policy makers. However, the report does include evalua-tion of the strategies and actions already under-taken by Oregon counties to address financial distress.
Find the report at www.sos.state.or.us/audits
From a press release
The Klamath Falls Farm-ers Market has done a bit of “growing” over the last
five or six years, and it would like to thank everyone who has supported and believed in our mission, first, to provide a venue and support for local small agriculture and a source for super-fresh produce to the public. Second, according to a news release, the market continues to strive to invigorate our downtown commu-nity and offer visitors to the area an experience that reflects the greater Klamath basin flavor, not only with great produce and prepared food, but also local artisans and crafts-men and women and their creations.
This season the market will have more than a dozen local area producers with great variety and quality of veggies, fruit and herbs, local grass-fed beef, honey and eggs and canned-pickled foods. Over the years, the increase of foot traffic has provided farmers the incentive to expand what they have to offer. Artisans provide a great mix of local arts and crafts from woodworking, textiles, jewelry, pottery to local authors, massage therapy and cre-ative local talent on display.
The market’s Children’s Program director Susan Smith has a creative lineup of craft projects for kids of all ages through the season, always free, educational and very fun every week. Local musicians have always been a staple at the market and a great bunch is scheduled through the year to make you tap your foot.
The market has added seating, shade and tables to its venue, and continues to make the market a more welcoming place to stay and visit for longer, like grabbing a bite to eat at one of its ready-to-eat food vendors or local food carts! Also available, as in the past, we have yummy bakery and pastry vendors.
This year will be the sixth to pro-vide a food stamp program for folks to use their EBT Oregon Trail card to make healthy local food choices. This program, as well as providing access
for the State run Senior Farm Direct Program and WIC, continues to grow and gain awareness — providing this access for low income families is a part of our mission and very gratify-ing that it’s getting more attention and being used more and more every year.
This is our third year for the Wednesday Farmers Market — a second or alternate opportunity for folks to access local farmers and pro-duce. Starting in May and running every Wednesday through the winter, the market will be at the Town &
Country Shopping Center, 3842 S. Sixth Street (Big Lots), from 10 a.m. to 1 p.m., and then 3 to 6 p.m. every Wednesday. A number of local agri-culture producers will be on hand, the number increasing as the sea-son progresses. Stop in and pick up farm fresh local veggies. EBT, WIC/SFDNP are available at this new location also.
Don’t hesitate to call the Farm-ers Market with questions, about products, services or programs, or if you’d like to become a vendor. We’re always searching for small producers.
H&N file photo
Michelle and Jeff Wyant talk with Susan Harmon, a trainee with the Oregon State University Master Gardener program, at the OSU Master Gardeners plant and garden sale during the Farmers Market opening day in downtown Klamath Falls on Saturday, June 4.
Auditors report shows improvement in state’s financial condition
Klamath Falls Farmers Market
(541) 273-1102
Email: charlie@klamathfalls farmersmarket.org
Website: www.klamathfalls farmersmarket.org
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Basin Business6 Thursday, June 23, 2016, Herald and News
Klamath CountyChamber of Commerce205 Riverside Drive, Suite AKlamath Falls, OR 97603Office: 541-884-5193Fax: 541-884-5195Charles “Chip” MassieExecutive [email protected]
Within a marriage, a man and a woman’s financial circumstances are generally pretty much equal. But if a divorce occurs, the woman’s situation tends to be somewhat more chal-lenging than that of her ex-spouse. And that’s why, during this major life transition, you may want to meet with a professional financial advi-sor to go over your spending needs and your cash flow, so that you know what you absolutely need today — and how you can plan for tomorrow.
But before we get into some pos-sible steps you can take, let’s look at some of the reasons that women may fare worse than men, financially speaking, following a divorce:
■ Lower income — The average woman’s family income drops by 37 percent% after divorce, according to the U.S. Census Bureau. And in many cases, divorce exacerbates a situation in which women were already trailing men in earnings. In fact, women still only earn 77 cents for each dollar earned by men, according to the U.S. Bureau of Labor Statistics.
■ Smaller retirement accounts — The average balance on women’s defined contribution plans (such as 401(k) plans) is only 60 percent of men’s average balances, accord-ing to LIMRA, a financial services research organization.
Of course, “averages” are just that — averages. But whether you recog-nize yourself in the above numbers or not, consider these suggestions:
Create an emergency fund Try to put six months’ to a year’s
worth of living expenses in a liquid account. Once you’ve established this emergency fund, you won’t have to dip into long-term investments to pay for unexpected costs, such as an expensive car repair, a new furnace or a large medical bill.
Contribute as much as you can afford to your retirement accounts
Contribute as much as you can afford to your retirement accounts. Even if you will eventually receive some of your ex-spouse’s retirement
funds, you need to take full advan-tage of your own savings opportuni-ties — because it’s pretty hard to save “too much” for retirement. If money is tight, it won’t always be easy, but contribute as much as you can to your 401(k) or similar employ-er-sponsored retirement plan. At a minimum, put in enough to earn the employer’s match, if one is offered.
Rebalance your investment portfolio
Rebalance your investment port-folio. If you are now investing for yourself, you’ll want to take a close look at your asset mix to make sure it is appropriate for your situation. For example, your risk tolerance may be quite different than that of your ex-spouse’s, so if you now have total control over an investment portfolio, you need to make sure it reflects your needs and preferences. Conse-quently, you may need to “rebalance” your holdings.
Above all, get some help As mentioned above, now is a good
time to meet with a financial advi-sor. And if you don’t have much expe-rience in managing your finances, you may even find it helpful to work with a trust company, which can col-laborate with your financial provider to manage your assets and can also provide a variety of other functions, including bill payment and record-keeping. A trust company’s services can prove especially valuable to you and your family should you ever become incapacitated.
Unfortunately, a divorce may leave you feeling “at sea” in many areas of your life. But by following the above suggestions, you can at least help keep your financial ship in calmer waters.
Submitted by: Meredith HoffmanFinancial Advisor-Edward Jones1307 S Alameda Ave, Suite BKlamath Falls, OR 97603541-273-2483
Klamath Freedom Celebration/Foundation is coordinating Fourth of July 2016 activities for Klamath Falls, including a parade and fire-works, according to a news release.
Parade applications are avail-able at Veterans of Foreign Wars, 515 Klamath Ave., and www.klamathfc.org in the reg-istration area along with vendor forms.
The parade will be on Main Street at 10 a.m., with the lineup between 8:30 and 9:30 a.m. at Spring and Main streets. Inde-pendence Day celebration activi-ties will be at the Klamath Coun-ty Fairgrounds on South Sixth Street starting at 1 p.m. and con-tinue until 10 p.m., which will be the starting time for the fireworks display.
For more information, call Doug at 541-281-7094 or Gale at 541-591-7013.
James Skinner, superintendent of Harbor Links Golf Course, has been honored with the Superin-tendent of the Year award for the state of Oregon, according to a news release. Skinner received the award on May 25 at Willamette
Valley Country Club. He was among 14 others
nominated from around the state. He has been in the business for almost 30 years, 20 of which have been in the Klamath Basin.
Focus on: Financial tips for newly single women
Harbor Links golf superintendent honored
Freedom Celebration planning in the works
Contact the Chamber
Do you have some business news you want to relay? Contact the Klamath County Chamber of Commerce
at 541-884-5193 or the Herald and News at 541-885-4437 and get into the next, monthly edition of Basin Business.
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Basin Business Thursday, June 23, 2016, Herald and News 7
New eateries open in Klamath Falls
Chilitos Mexican restaurant and drive-thru
■ Location: 5531 S. Sixth St.■ Open: Mon-Sat. 11 a.m. to 9 p.m.Sunday 11 a.m. to 8 p.m.
Alejandro Ruelas graduated last year from George Fox University with a degree in nursing, but when he moved back to his hometown of Klamath Falls he had something a little different in mind.
“I went to college and I saw a lot of these deals (restaurants), and then I came back and (my family) said they wanted to open something,” Ruelas said.
Now Ruelas is the proud owner of Chilitos restaurant, a build-your-own meal, Chipotle-style Mexican restaurant recently opened.
Ruelas’ father, Rafael Galvan, and his uncle, Elias Galvan, have had at least 15 years of experience in the
restaurant industry, and are working with Ruelas to run the business.
The three are putting the finish-ing touches on the former coffee shop before it opens. They have installed new appliances for the kitchen, including a shiny new hood over the grills.
The menu includes various options for choosing entrees, proteins, fill-ings and extras.
“We wanted to bring something different to Klamath,” Ruelas said. “There’s not necessarily a place to walk up and build your own meal. We’re just keeping it simple with homemade recipes.”
Ruelas said he looks forward to balancing a nursing career and own-ing the restaurant.
“I am an RN,” Ruelas said. “I should be doing both for a little bit, just to try them. It will be a busy year.”
Business profiles
Lighthouse Yogurt Company■ Location: 513 Main St.■ Open: 11 a.m. to 9 p.m. daily
The frozen yogurt trend has caught on in Klamath Falls, but Steven Linders has a new approach to the soft-serve confection. Light-house Yogurt Company is now dishing up fro-zen yogurt that is a low-calorie alternative to other desserts.
The Klamath Falls native opened Light-house Yogurt Company two months ago with his father, Jeff Linders, because the family had grown up eating desserts after their meals and they wanted to bring something new to Klamath Falls.
“My dad can’t do dairy or a lot of lactose or gluten,” Linders said. “So we found this product from New York that is kosher, gluten-free, safe for diabetics or people with a lactose allergen. It’s a water-based product, it’s not milk-based. It’s sweetened with fruit sugar only, and is only made with eight ingredients.”
Linders said his business is unique because it gives 10 percent of each purchase back to one of three local charities, including the YMCA of Klam-ath Falls, Friends of the Children and the Klamath-Lake Counties Food Bank.
“I think if more businesses got into the habit of giving a little bit back, like imagine if every business in town supported one local charity, we would be able to help out so many people,” Linders said.
Lighthouse Yogurt Company gives customers the opportunity to vote on 146 possible flavors and rotates in a flavor every two to three days.
“It’s my first business that I’ve run pretty much by myself and it’s been really exciting,” Linders said. “We just want our guests to come in and have a good time.”
H&N file photo
FROM LEFT: Rafael Galvan, Alejandro Ruelas and Elias Galvan stand for a portrait behind the food prep line at the soon-to-open Chilitos Mexican Grill restaurant on June 7.
H&N file photo
Joey Oswald helps her son Miles, 4, put gummies on his frozen yogurt at Lighthouse Yogurt Company in downtown Klamath Falls recently.
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Basin Business8 Thursday, June 23, 2016, Herald and News
Senator Doug WhitsettR-Klamath Falls - District 28
I represent the citizens of Senate District 28, which includes Klamath, Lake and Crook, as well as parts of Jackson and Deschutes Counties.
As Senator of one of the largest Senate districts in the state, it is extremely important that my constituents remain in contact with me about the issues
and concerns that affect their lives. You and I must work together to protect the common interests of rural Oregonians.
I encourage you to contact my office by either email or telephone so that I can know how to best serve you. I look forward to hearing from you soon.
Many predicted the 2010 passage of the federal Patient Protection and Affordable Care Act would cause harmful consequences to citizens throughout the country. Those concerns have proven prophetic during the six years since Obamacare was signed into law. Obamacare was passed on party-line votes by Democrats in both the U.S. House of Representatives and the U.S. Senate. Republicans in both chambers opposed the new law. Then-House Speaker Nancy Pelosi (D-California) famously stated that “we have to pass the bill so that you can find out what is in it.” Most veteran lawmakers should have found that remark beyond offensive. Like many others, I make it a point to read and try to understand each piece of legislation before I cast a vote either in committee or on the floor of the Oregon Senate. Voters should expect no less from their elected representatives, regardless of party affiliation. Disgraced former governor John Kitzhaber, along with many other Democratic leaders in Oregon, was determined to make this state the poster child for health care reform. Part of that effort involved the creation of the Oregon Health Authority (OHA) during the 2009 regular session. Through the passage of House Bill 2009, the OHA was spun off from the Department of Human Services (DHS) largely for the sake of implementing the reforms promised under the federal legislation. Although HB 2009 was not a strictly partisan effort, I voted no due to many concerns, including cost and efficacy. The combined budgets of the two agencies has increased more than 130 percent during the six years since that ill-advised division. The expense of implementing Obamacare has been the greatest cost driver in that budget-busting expansion, despite the constant assurances of “free health care” proclaimed by its proponents. My concern regarding how the top-down federal legislation would ultimately leave consumers with fewer and more expensive choices for their health care providers has unfortunately come to pass. The consequences of Obamacare are starting to hit really close to home. An insurance agent who serves the northern part of our large, rural Senate District recently informed my office that multiple providers are discontinuing service to the area. After several phone calls to other area insurance agents confirmed what we were told, I scheduled yet another meeting with state’s Insurance Commissioner and the Director of the Department of Consumer and Business Services (DCBS) to learn more about the problems. The Director and Commissioner informed me there are now 500 counties in the United States served by only one insurance carrier. The numbers for Oregon and its counties were only marginally better. Several large health insurance carriers are either leaving Oregon or are dramatically curtailing their areas of service and health plan portfolios. We were informed that LifeWise will discontinue offering plans in Oregon starting next year. Moda will no longer service customers in 23 counties, including three of the five counties I represent in the Legislature. Pacific Source is pulling out of 30 counties, and Providence will no longer be servicing 17 counties. This is very bad news for many of the state’s 36 counties. According
to the Commissioner, under current plans, only eight counties will have more than five health insurance providers. The number of insurance providers falls precipitously outside of those more populous counties. We were told that as many as 28 counties will have four or fewer health providers. Approximately 14 of those will have only three, including the more populous Jackson, Lane and Deschutes counties. Nine counties currently have only two identified exchange insurance providers. The more rural district I represent in the Senate includes all or parts of five counties, including Jackson and Deschutes. Four will have three providers and Lake County will have only two. I was assured by the Insurance Commissioner and DCBS Director that the number of remaining providers will be adequate for preserving competition. However, I remain skeptical because virtually all remaining exchange insurance providers intend to ask for double-digit insurance premium increases, and one is requesting increases greater than 30 percent. Health insurance is currently being provided by two other companies that are not on the state insurance exchange. It is my understanding that those companies and their clients are prohibited from accessing and taking advantage of the Obamacare tax breaks and incentives. Oregon also spent over $300 million on a website for our state health insurance exchange. That website never worked or signed-up a single person for private insurance coverage. The state and software giant Oracle continue an expensive court battle over who was at fault for the failure. Oregon taxpayers are footing the State’s legal bills. Republican members of the U.S. House Committee on Oversight and Government Reform have called for a criminal investigation into the Cover Oregon debacle. Not surprisingly, they want to know what happened to their $305 million. What the public is not being told in those discussions is Oregon was not required to build a website from scratch. In December 2012, my chief of staff wrote an article for the Estacada News in which former state Rep. Patrick Sheehan grilled state officials regarding that decision. Those officials appeared to respond they were not too worried about spending other peoples’ money and could simply ask the federal government for more if they ran out. Sheehan, who has a background in website development, had received live, real-time demonstrations from a company alleging it could have licensed existing software to the state for $6 million and customized the software to fit the State’s needs for another $6 million. We will never know whether that $12 million investment could have successfully replaced the Cover Oregon tech project. The private sector alternative would have cost only about four percent of what the state eventually spent building its ill-advised website debacle. Instead, we became a national laughingstock for wasting $300 million to build a website that was never used to sign-up private sector insurance. Worse, when more than 12,000 insurance applications could not be serviced by the website, the state was forced to hire 400 employees to process paper applications by hand. Compensation for the
replacement “low-tech” employees was paid by taxpayers. The controversy surrounding Cover Oregon has yet to subside. While it is true there are now fewer Oregonians without health insurance coverage than before the health care reforms were enacted, the State’s private insurance market place appears to remain in disarray. Most of the new insurance coverage is due to the expansion of the State’s Medicaid program through the Oregon Health Plan. The federal government has thus far picked up the tab for paying the premiums on all those new Medicaid participants. However, beginning next year, the federal government will be lowering its contribution towards covering those costs. The state’s obligation to pay for its share of the greatly expanded Medicaid population may soon be as much as $1 billion per budget cycle. Similarly, the decision to create the OHA will continue to have severe ramifications for the rest of the state’s budget. All-funds combined spending for OHA and DHS has ballooned to more than $28 billion. No end appears to be in sight for that near exponential spending growth that reduces available funding for public safety and education. In short, federal health care reform has become every bit the disaster that many of us predicted it would be. Our well-founded cynicism was based on fiscal concerns that further government disruption of the insurance marketplace would result in the restricted availability of medical services and significantly higher costs. Those concerns were met and overridden by derision and allegations that we didn’t want our State’s most needy to have health insurance coverage. Many of the events we predicted would occur have come to pass. Some are even worse than imagined. Access to care is becoming more difficult. Many providers are reluctant to service Medicaid patients due to cost and reimbursement constraints. Government regulators are reducing payments for available diagnostic and treatment procedures. Patient wait times and frustration are escalating. Oregonians are already experiencing fewer choices when it comes to health care. Those choices will be even more unaffordable for those who pay for their own health care insurance. This reality is especially true for people living in rural areas. All things become clearer in hindsight. Perhaps all of this could have been prevented had federal legislators, on both sides of the aisle, actually read the Affordable Care Act and attempted to understand its ramifications and potential unintended consequences. Unfortunately, we are left to deal with the Obamacare catastrophe.
Please remember—if we do not stand up for rural Oregon, no one will.
Best regards,Doug
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THE DISASTER THAT IS OBAMACARE... 2017 WILL BE EVEN WORSE.
June 2016 Newsletter for Oregon State Senator Doug Whitsett, District 28Paid Advertisement
