HB 4039 — Relating to medical assistance; and declaring an emergency.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-EngrossedEnrolled House Bill 4039 Ordered by the House February 12 Including House Amendments dated February 12 Introduced and printed pursuant to House Rule 12.00.

Presession filed (at the request of House InterimIn- terim Committee on Health Care for Representative Rob Nosse for Richard Blackwell, PacificSource Health Plans) SUMMARYCHAPTER The................................................. following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly.

ItAN isACT anRelating editor’sto briefmedical statementassistance; of the essential features of the measure.

The statement includes a measure digest written in compliance with applicable readability standards.

Digest:

The Act requires OHA to change the way it sets rates for CCOs.

The Act adds steps that OHA must take before making new rules.

(Flesch Readability Score:

92.6).

[Digest:

The Act requires OHA to change the way it sets rates for CCOs.

The Act adds steps that OHA must take before making new rules.

The Act prevents OHA from taking certain costly measures until January 2, 2028.

(Flesch Readability Score:

69.3).] Requires the Oregon Health Authority to develop a transparent and data-driven process for de- veloping capitation rates for coordinated care organizations.

[Requires the Oregon Health Policy Board to establish a process for public review of and comment on the authority’s rate development process.

Requires the authority to commission an independent review of the current rate development process and report back to the Legislative Assembly.] Requires the authority to prepare a medical assistance cost impact statement before adopting rules other than procedural rules.

[Prohibits the authority from adopting a new rule, program or contractual requirement that will cost $1 million or more during a biennium.

Sunsets on January 2, 2028.] [Imposes a three-year moratorium on the requirement for a coordinated care organization to spend a portion of the organization’s annual net income or reserves on addressing health disparities and the social determinants of health.] Declares an emergency, effective on passage.

A BILL FOR AN ACT Relating to medical assistance;

In analyzing any material cost impact of contract changes, the au- NOTE:thority shall separately identify the cost of the previous year’s contractual requirements and the cost of the new requirements in the proposed contract or contract restatement.

Matter in boldfaced type in an amended section is new;

matter [italic and bracketed] is existing law to be omitted.

New sections are in boldfaced type.

LC 194 A-Eng.

HB 4039 thority shall separately identify the cost of the previous year’s contractual requirements and the cost of the new requirements in the proposed contract or contract restatement.

Enrolled House Bill 4039 (HB 4039-A) Page 1 414.065.

(1)(a) Consistent with ORS 414.690, 414.710, 414.712 and, 414.766 and section 2 of this 2026 Act and other statutes governing the provision of and payments for health services in medical assistance, the Oregon Health Authority shall determine, subject to such revisions as it may make from time to time and to legislative funding:

(5) Notwithstanding subsection (1) of this section, the Department of Human Services shall be [2]responsible A-Eng.for determining the payment for Medicaid-funded long term care services and for con- tracting with the providers of long term care services.

HB 4039 responsible for determining the payment for Medicaid-funded long term care services and for con- tracting with the providers of long term care services.

Enrolled House Bill 4039 (HB 4039-A) Page 2 (2) Before adopting any permanent or temporary rule, except a procedural rule, the au- thority shall prepare a medical assistance cost impact statement that estimates the eco- nomic impact of the adoption of the rule on the state medical assistance program.

[3]Passed by House February 17, 2026 Received by Governor:

........................M.,........................................................., 2026 ..................................................................................

Timothy G.

Sekerak, Chief Clerk of House Approved:

........................M.,........................................................., 2026 ..................................................................................

Julie Fahey, Speaker of House ..................................................................................

Tina Kotek, Governor Passed by Senate March 2, 2026 Filed in Office of Secretary of State:

......................................................................................................................................., 2026 Rob Wagner, President of Senate ..................................................................................

Tobias Read, Secretary of State Enrolled House Bill 4039 (HB 4039-A) Page 3