Hospitals prepare for start of Oregon health plan prototype.

In March, the Clinton administration approved Oregon's controversial Medicaid rationing program, but said the state must revise its ranking of services to eliminate the possibility of bias against disabled people. Under the Oregon system, approximately 688 medical procedures and services were ranked according to their cost effectiveness. Based on projections of available funds, officials decided they wouldn't cover any treatment ranked below 568. But with the savings, the state will be able to provide Medicaid to the 120,000 Oregonians who now live below the poverty line, but don't receive Medicaid benefits.