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Democrats are a couple seats shy of the three-fifths supermajorities they would need to pass a bill raising revenue in the House and Senate, so they would need at least one Republican vote in each chamber. House Republican Leader Mike McLane , R-Powell Butte, said Republicans recognize the need for some additional revenue for health care but disagree with Democrats on the amount. "Now we're darn close to having agreement we can put in a bill and pass, which would help with the budget," McLane said on Wednesday. "But we're not there yet." The state needs more money to pay for Medicaid because the federal government plans to cover a lower share of the costs of the state's health care program for the poor. Much of that decrease was anticipated as part of the Affordable Care Act, which initially paid for 100 percent of states' Medicaid expansions but then asked states to begin paying part of the tab. Brown and lawmakers are seeking a tax increase on hospital services and a new tax on insurance premiums to shore up the Oregon Health Authority budget. The 28 largest hospitals in Oregon already pay a 5.5 percent tax that helps fund Medicaid. Hospitals benefit from the tax because it's returned to them in the form of Medicaid payments, and a representative of the Oregon Association of Hospitals and Health Systems said the group is committed to finding a solution to the Medicaid shortfall. "Hospitals have repeatedly partnered with the state in solving Medicaid budget issues over the past 10 years," Philip Schmidt, associate vice president for public affairs for the group, wrote in a statement. "This biennium is no different, even as hospital financials have deteriorated substantially. Hospitals believe a solid, sustainable Medicaid budget is in the best interests of the patients they serve as well as all Oregonians." At the same time, Brown and some lawmakers want to raise $55 million to extend Medicaid coverage to 13,000 to 15,000 low-income children who lack proof of U.S.

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