HB 3964
Establishes a voluntary mediation and arbitration process that certain health insurers and providers may participate in if the insurer and provider are unable to reach an agreement during a contract renewal negotiation.
Jurisdiction
Oregon
Session
2025 Regular Session
Committee
Behavioral Health and Health Care
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill establishes a process for health insurers and providers to resolve contract disputes through mediation and binding arbitration if they can’t reach an agreement during renewal negotiations. The Governor, or a designee, will make the final decision in arbitration and can impose penalties on parties who fail to comply with the agreement. This is intended to address Oregon’s healthcare crisis and ensure access to affordable care.
Key provisions
- Health insurers and providers can agree to mediation and binding arbitration for contract renewals affecting over 30,000 Oregonians.
- A 15-day cooling-off period is required before mediation begins.
- The Governor or a designee will serve as the arbitrator.
- The arbitrator can issue a final determination outlining contract terms and associated costs.
- Parties failing to implement the final determination may face civil penalties up to $11,000 per day.
- A mediator must be a senior judge or qualified legal practitioner.
- Parties must agree in writing to participate in the mediation and arbitration process.
- The Governor has the authority to select a mediator if the parties cannot agree.
Who is affected
- Health Insurers
- Health Care Providers
- Oregon Consumers
- The Governor’s Office
- The General Fund of the State Treasury
Notable changes
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