Government overreach: OHA’s premature decision threatens affordable groceries

By Oregon Small Business Association,

The Oregon Health Authority’s (OHA) recent decision to intervene in the Kroger-Albertsons merger is both misguided and emblematic of broader government overreach, ultimately failing to serve the people of Oregon. As the first Asian American chairman of the Oregon Republican Party and an entrepreneur who manages several businesses, I understand the importance of a thriving free market and the dangers of unwarranted governmental interference.

OHA’s hasty judgment on the Kroger-Albertsons merger disrupts a process that should be left to national regulators and market forces. Albertsons itself has stated publicly during the Portland hearings that the company is in financial trouble, facing significant structural issues that prevent it from competing alone. The alternative to this merger is bleak—Albertsons could be forced into layoffs, store closures, or even exiting entire markets, leaving vulnerable communities without access to groceries.

Kroger, on the other hand, has committed to investing $1 billion into lowering prices at Albertsons stores. Currently, Albertsons’ prices are 10-12% higher than Kroger’s, and this merger would help bring those prices down, benefitting Oregon consumers. This investment could begin to chip away at the higher price model Albertsons employs, ultimately making groceries more affordable for working families.

Yet, instead of allowing this process to play out, OHA has chosen to interfere. This comes at a time when the agency should be laser-focused on Oregon’s far more pressing health crisis: the opioid epidemic. In 2023 alone, Oregon lost 1,049 lives to unintentional opioid overdoses, a statistic reported by OHA itself. Governor Tina Kotek declared a state of emergency over fentanyl in January, calling on state agencies like OHA to step up their response.

But instead of channeling its full energy into fighting the opioid crisis, OHA is meddling in a private-sector merger—a matter that falls outside its core mission. This decision highlights a troubling trend of OHA setting its own agenda, ignoring the urgent needs of Oregonians in favor of needless interference in business transactions.

The ongoing litigation and regulatory processes surrounding the Kroger-Albertsons merger are designed to address any concerns thoroughly and fairly. OHA’s involvement only creates uncertainty for consumers and threatens Oregon’s access to stable, affordable grocery options. Albertsons’ future, including union jobs and local pharmacy sustainability, is at stake—yet OHA’s actions could jeopardize this merger, leaving our communities at risk.

Government overreach has become a hallmark of recent years in Oregon, and it is time for change. We need state agencies to respect the free market and focus on real issues like the opioid crisis, which is devastating families and straining our public health system. OHA’s missteps have already eroded public trust, and this latest interference only compounds the problem.

Let’s demand that our state agencies prioritize the health and safety of Oregonians. The opioid crisis is a challenge that requires OHA’s full attention, not half measures or distractions. The people of Oregon deserve better.

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