HB 4038
Prohibits the Oregon Health Authority from taking enforcement actions against providers or payers under the Health Care Cost Growth Target program before January 1, 2036.
Jurisdiction
Oregon
Session
2026 Regular Session
At the request of
(at the request of House Interim Committee on Health Care for Representative Rob Nosse)
Committee
Health Care
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Sign in to take actionPublic sentiment
Support
67%
Oppose
33%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill prevents the Oregon Health Authority (OHA) from taking enforcement actions against healthcare providers and payers related to the Health Care Cost Growth Target program until January 1, 2036. Currently, OHA can penalize entities that exceed cost growth targets. This legislation effectively pauses enforcement actions for the next decade, providing a period of stability for these entities. The bill sunsets on January 2, 2036, allowing for potential adjustments to the program in the future.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
House Interim Committee on Health Care
Arguments in favor
Reasons to support this legislation.
Supporters of HB 4038 generally agree that Oregon's healthcare cost growth is unsustainable and advocate for a temporary pause in financial penalties under the Cost Growth Target program. They argue that this would allow policymakers, providers, and employers to address program defects, develop a long-term approach, and alleviate financial pressures on healthcare providers, enabling them to maintain access to quality care. Many concerns about the accuracy of data used to administer the program, with some highlighting uneven cost growth concentrated in hospital claims and pharmacy claims. By creating space for recalibration, proponents believe that HB 4038 would facilitate a meaningful review of Oregon's Cost Growth Target program and promote a more sustainable healthcare system.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB 4038 express concerns about its potential to exacerbate rising healthcare costs in Oregon, with some testifiers arguing that the bill would tie into existing legislation allowing OSHU to become a non-profit organization. Many believe the "10-year pause" on enforcement would be fiscally reckless and abandon oversight, putting a burden on small businesses and taxpayers. Additionally, opponents argue that weakening accountability measures without a compelling reason would remove essential checks on healthcare cost growth, potentially leading to increased costs for individuals and the state. Some testifiers also suggest investigating those responsible for implementing the Health Care Growth Target Program, highlighting the need for transparency and accountability in addressing Oregon's rising healthcare costs.
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