Governor saves Oregon budget and his reputation in healthcare deal with Obama administration

Saving Oregon's fragile state budget along with Gov. John Kitzhaber's reputation, the Obama administration agreed to a complicated deal that retools the way medical care is delivered to the poor while funneling $1.9 billion to the state over the next five years. Kitzhaber announced the deal in Washington Thursday after two days of high-stakes negotiations with Obama administration officials. The talks came during a hasty trip to Washington after word reached Salem that the federal agreement—and its money—could be in trouble. Supporters say the changes will transform health care in the state, ultimately saving money for both the state and the federal government.