OregonHB 20102025 Regular SessionHouseWALLET

Relating to funding to improve access to health care; and prescribing an effective date.

Sponsored By: Julie Fahey (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 1 benefits, 3 costs, 4 mixed.

Public employee health spending faces limits

Oregon’s Public Employees’ Benefit Board must use payment methods aimed at limiting yearly health spending growth in self-insured plans. The limit is 3.4% per member, and the specified plan assessment counts toward it. This changes the board’s spending calculation, not a set premium or benefit amount for workers.

Health entities lose a tax exclusion

The law removes an Oregon corporate activity tax exclusion tied to specified health care assessments. Covered hospitals, managed care organizations, and entities paying the listed health plan assessments lose that basis for exclusion. Tax liability still depends on the tax’s other requirements and any separate exclusion. Long-term care facilities paying the specified separate assessment remain excluded.

Health assessments face state fee oversight

The law removes a fee-rule exemption for specified health plan assessments paid to Oregon’s insurance department. Those assessments are no longer automatically outside state rules governing new or increased agency fees. This change does not itself raise an assessment or set a new payment amount.

Hospital revenue counts more toward transaction review

Hospitals must count payments reimbursing hospital assessments when calculating net patient revenue for health market oversight. The law removes the previous exclusion for those payments. Including them can affect whether a health care transaction reaches the revenue thresholds for review.

Health fund balances move into general budget

On December 31, 2038, remaining Health System Fund and Hospital Quality Assurance Fund money moves to Oregon’s General Fund. The law also removes the specific rule directing certain health plan assessment receipts to the Health System Fund. The supplied text does not name a replacement destination for those receipts or state the amounts involved.

Health plan assessments continue through 2032

The law extends insurer premium assessments through December 31, 2032, instead of December 31, 2026. Assessments also continue on funding for public employees’ self-insured health plans and on managed care payments from Oregon Health Authority. The public employee assessment covers the benefit board and its contracted plan administrators. Assessments remain collectible for quarters ending by December 31, 2032, despite the governing provisions’ January 2, 2038 repeal. These provisions do not set assessment amounts.

Hospital assessments continue with reimbursement timelines

Covered hospitals pay assessments on net inpatient and outpatient revenue, and Oregon Health Authority can set different rates for each. Assessments end December 31, 2032, or earlier if they stop qualifying for federal Medicaid or CHIP funding. The law preserves collection for eligible quarters ending by December 31, 2032. Oregon Health and Science University reimbursements follow the 2019 rules for payments from July 1, 2019, through June 30, 2032. A separate set of reimbursement rules applies beginning July 1, 2032.

Insurer reinsurance credit gains and removal

The law requires Oregon’s insurance director to grant Oregon-based insurers financial credit for reinsurance transferred to the Oregon Reinsurance Program. It also contains an amendment removing that express requirement. The supplied provisions do not identify the removal date or establish a household payment.

Sponsors & Cosponsors

Sponsor

  • Julie Fahey

    Democratic • House

Cosponsors

  • Mark Gamba

    Democratic • House

  • Thuy Tran

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 78 • No: 25

Senate vote • 3/17/2025

Third reading. Carried by Meek. Passed.

Yes: 22 • No: 5

Senate vote • 3/12/2025

Finance and Revenue: Heard and Reported Out

Yes: 5 • No: 0

House vote • 2/27/2025

Third reading. Carried by Pham H. Passed.

Yes: 40 • No: 15

House vote • 2/20/2025

Revenue: Heard and Reported Out

Yes: 4 • No: 3

House vote • 2/11/2025

Behavioral Health and Health Care: Heard and Reported Out with Amendments

Yes: 7 • No: 2

Actions Timeline

  1. Chapter 4, (2025 Laws): effective on the 91st day following adjournment sine die.

    4/21/2025House
  2. Governor signed.

    3/26/2025House
  3. President signed.

    3/20/2025Senate
  4. Speaker signed.

    3/20/2025House
  5. Third reading. Carried by Meek. Passed.

    3/17/2025Senate
  6. Second reading.

    3/13/2025Senate
  7. Recommendation: Do pass the A-Eng. bill.

    3/13/2025Senate
  8. Work Session held.

    3/12/2025Senate
  9. Public Hearing held.

    3/10/2025Senate
  10. Referred to Finance and Revenue.

    3/4/2025Senate
  11. First reading. Referred to President's desk.

    3/4/2025Senate
  12. Vote explanation(s) filed by Levy B, Nelson.

    2/27/2025House
  13. Third reading. Carried by Pham H. Passed.

    2/27/2025House
  14. Second reading.

    2/25/2025House
  15. Recommendation: Do pass.

    2/24/2025House
  16. Work Session held.

    2/20/2025House
  17. Public Hearing held.

    2/18/2025House
  18. Referred to Revenue by prior reference.

    2/14/2025House
  19. Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Revenue by prior reference.

    2/14/2025House
  20. Public Hearing and Work Session held.

    2/11/2025House
  21. Public Hearing held.

    2/6/2025House
  22. Referred to Behavioral Health and Health Care with subsequent referral to Revenue.

    1/17/2025House
  23. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • SFR Amendment -A3 (Proposed)

    3/12/2025

  • SFR Amendment -A4 (Proposed)

    3/12/2025

  • SFR Amendment -A5 (Proposed)

    3/12/2025

  • SFR Amendment -A6 (Proposed)

    3/12/2025

  • HBHHC Amendment -2 (Adopted)

    2/11/2025

  • A-Engrossed

  • Enrolled

  • House Amendments to Introduced

  • Introduced

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