Oregon Audit Finds Millions in Questionable Payments in State Health Program

Oregon’s Annual Statewide Single Audit of state-managed federal programs for the fiscal year ending June 30, 2025, found that while the majority of federal programs complied, several issues were identified across multiple programs, including OHP Bridge.

Oregon Statewide Audit Reveals Flaws In Some Programs

Released by the Oregon Secretary of State, the annual audit found most federal programs complied, giving the state an “unmodified opinion,” generally expressed when financial statements are considered generally accurate, despite the findings.

An Adverse Opinion was issued for one OHA program due to pervasive noncompliance, and a Disclaimer of Opinion was issued for an ODOT program due to insufficient evidence.

Oregon spent $21.1 billion in federal funds across 433 programs in the 2025 fiscal year. 16 of those, accounting for $14.6 billion of that spending. The most significant issues were found in programs run by:

• The Oregon Health Authority: Auditors found that the Basic Health Program (BHP) Bridge had errors in both the upper and lower income eligibility limits. BHP provides free health coverage to around 41,100 people whose household income is slightly above the threshold for traditional Medicaid benefits, but household income must be between 133% and 200% of the federal poverty level to qualify.
  • Auditors first found that the income threshold was not properly coded in the Oregon Eligibility (ONE) system, resulting in individuals receiving BHP benefits despite having annual income below the required threshold and $8 million in improper payments.
  • The auditors also found some individuals who were making above the required income threshold were still receiving benefits. Auditors said the ONE system did not end benefits when someone began making more than 200%.
  • The auditors estimated that the errors resulted in about $7 million in improper or questionable payments, and an error rate of 3.8%.

• The Oregon Department of Transportation: Auditors issued a Disclaimer of Opinion. They couldn’t gather enough evidence to verify compliance with the Highway Planning and Construction Program, because the department’s expenditures to date for projects could not be limited to a single fiscal year. Major issues identified included:
  • Deficiencies in program policies and procedures to protect against noncompliance,
  • Issues with federal program compliance,
  • System and process failures, such as miscommunication between departments.

Both agencies agreed with the Auditor’s recommendations on fixing the errors.