Bill > HB3964

This bill establishes a voluntary mediation and binding arbitration process for health insurers and providers when they cannot agree on contract renewal terms that would impact over 30,000 Oregonians. The process begins with a 15-day cooling-off period, after which the parties must choose a mediator (either a senior judge or a qualified legal practitioner with extensive health insurance and mediation experience). If they cannot agree on a mediator, each side submits three names to the Governor, who then selects one. The parties then engage in mediation for up to 120 days or until a mediator declares an impasse. If no agreement is reached, another 15-day cooling-off period follows, during which both parties develop final offers. Arbitration then occurs with the Governor or a designated representative, who must issue a final determination within five days. The determination sets contract terms and arbitration costs. If either party fails to implement the determination, they must pay the full mediation and arbitration costs and can be subject to civil penalties up to $10,000, plus an additional $1,000 per day of non-compliance, which will be paid into the state's General Fund. This process is designed to help resolve contract negotiations between health insurers and providers without disrupting health care services.

Health and Social Services

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3964