The Senate Committee on Labor and Business convened on March 18, 2025, to discuss critical issues affecting long-term care providers in Oregon, particularly in relation to Senate Bill 1138. The meeting featured testimony from representatives of the Oregon Health Care Association (OHCA), who expressed strong opposition to the proposed legislation.

The OHCA highlighted their commitment to collaborating with the legislature and stakeholders to support the caregiving workforce. They noted that Oregon ranks highly for direct care worker conditions, yet emphasized that the primary challenge facing the long-term care system is affordability. With the aging baby boomer population set to increase demand for care, the association warned that the current Medicaid funding structure is inadequate, with rates underfunding care by approximately $1,000 per month.

Concerns were raised about the potential impact of Senate Bill 1138, which the OHCA argued would exacerbate existing issues within the care system. They pointed out that the bill proposes the establishment of a new board with broad jurisdiction over various care settings, which could lead to confusion and inefficiencies given the existing regulatory framework involving multiple state agencies. The OHCA criticized the bill for potentially undermining worker wages by attempting to equalize pay across different care settings, which could hinder the ability of workers to earn higher wages in a competitive market.

Additionally, the OHCA expressed concerns regarding privacy implications for workers, as the bill would require the public disclosure of personal employment data without consent. They also noted that the proposed requirement for workforce standards to be submitted to the legislature for funding could be impractical, given the current underfunding of Medicaid services.

The testimony concluded with a call for the legislature to focus on meaningful investments in wages, training, and access to care rather than pursuing new policies that could complicate the regulatory landscape. The OHCA urged lawmakers to prioritize stabilizing funding for existing agencies and modernizing processes before creating additional governmental structures.

Overall, the meeting underscored the urgent need for a comprehensive approach to address the challenges facing Oregon's long-term care system, particularly in light of the anticipated increase in demand for services. The discussions highlighted the importance of balancing regulatory oversight with the need for adequate funding and support for caregivers.