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OregonHB 22052025 Regular SessionHouseWALLET

Relating to coordinated care organization contracts.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Current CCO contracts extended through 2026

Any contract between the state and a CCO that was in effect on July 27, 2023 remains in place through December 31, 2026, unless the state extends it further. This keeps current plans and member coverage steady through 2026.

Limits on retroactive changes and clawbacks

The state may apply contract changes retroactively only if they do not trigger recovery of past payments, or if federal CMS puts that requirement in writing. If any retroactive change leads to a recovery, the state must ensure it does not harm the CCO’s required minimum risk‑based capital. These limits reduce sudden financial shocks that can disrupt member care.

Orderly transitions when a CCO exits

No later than 134 days before a benefit period ends, the state must send each CCO its proposed contract changes for the next period. A CCO that will not renew must tell the state within 14 days; the contract then ends at the period’s close. The state can require the contract to continue into the next period until 90 days after the CCO has notified all members and providers, and given plans to move members and close out business. The Director may waive these timing rules if it helps run the program and protect recipients. A “benefit period” is a time shorter than the full contract when certain terms apply.

Longer, steadier contracts for CCO plans

The law sets a minimum five-year initial term for all contracts with coordinated care organizations (CCOs). The state may change a CCO contract only once every 12 months, unless both sides agree or a change in law requires it. Once in the first eight months, the state may adjust a CCO’s global budget back to the start of the calendar year for shifts in members or health status. The state must give at least 60 days’ notice before proposing contract changes. These rules apply to contracts in place when the 2025 law takes effect and to any signed, changed, or renewed after that.

Quality enforcement with time to fix

The state can end a CCO contract if the plan fails required outcome and quality measures or breaches the contract. Before ending a contract, the state must give the CCO a reasonable time to fix the problems. This balances stronger oversight with protection against sudden service cuts.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 80 • No: 14

Senate vote • 6/4/2025

Third reading. Carried by Patterson. Passed.

Yes: 28 • No: 2

Senate vote • 5/15/2025

Health Care: Heard and Reported Out

Yes: 5 • No: 0

House vote • 4/17/2025

Third reading. Carried by Nosse. Passed.

Yes: 38 • No: 12

House vote • 4/8/2025

HBHHC: Heard and Reported Out with Amendments

Yes: 9 • No: 0

Actions Timeline

  1. Chapter 320, (2025 Laws): Effective date January 1, 2026.

    7/7/2025House

  2. Governor signed.

    6/16/2025House

  3. President signed.

    6/9/2025Senate

  4. Speaker signed.

    6/5/2025House

  5. Third reading. Carried by Patterson. Passed.

    6/4/2025Senate

  6. Carried over to 06-04 by unanimous consent.

    6/3/2025Senate

  7. Carried over to 06-03 by unanimous consent.

    6/2/2025Senate

  8. Carried over to 06-02 by unanimous consent.

    5/29/2025Senate

  9. Carried over to 05-29 by unanimous consent.

    5/28/2025Senate

  10. Carried over to 05-28 by unanimous consent.

    5/27/2025Senate

  11. Carried over to 05-27 by unanimous consent.

    5/23/2025Senate

  12. Carried over to 05-23 by unanimous consent.

    5/22/2025Senate

  13. Second reading.

    5/21/2025Senate

  14. Recommendation: Do pass the A-Eng. bill.

    5/21/2025Senate

  15. Work Session held.

    5/15/2025Senate

  16. Public Hearing held.

    5/8/2025Senate

  17. Referred to Health Care.

    4/21/2025Senate

  18. First reading. Referred to President's desk.

    4/21/2025Senate

  19. Third reading. Carried by Nosse. Passed.

    4/17/2025House

  20. Rules suspended. Carried over to April 17, 2025 Calendar.

    4/16/2025House

  21. Second reading.

    4/15/2025House

  22. Recommendation: Do pass with amendments and be printed A-Engrossed.

    4/14/2025House

  23. Work Session held.

    4/8/2025House

  24. Public Hearing held.

    3/27/2025House

  25. Referred to Behavioral Health and Health Care.

    1/17/2025House

Bill Text

  • Enrolled

    6/4/2025

    PDF

  • A-Engrossed

    4/14/2025

    PDF

  • House Amendments to Introduced

    4/14/2025

    PDF

  • HBHHC Amendment -7 (Adopted)

    4/8/2025

    PDF

  • HBHHC Amendment -7 (Proposed)

    4/3/2025

    PDF

  • HBHHC Amendment -1 (Proposed)

    3/27/2025

    PDF

  • Introduced

    1/10/2025

    PDF

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