- This paper traces the origins of the Oregon plan, explains how it works and passes judgment on its worth. The Oregon plan is a controversial health rationing plan for the poor under America's Medicaid system. Over 700 services have been ranked in priority order and the state legislature has said that it can cover 587 of these services with the funds at its disposal. Since over half the money required to fund these services comes from Washington, federal approval will be needed, but if that is granted, and other states follow Oregon's lead, the plan could set a pattern for the United States, affecting not only the poor but also those covered by private insurance. This paper seeks to answer the question of whether the Oregon way help to resolve the difficult decisions that have to be made in Britain about rationing and resource allocation.