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Bill

HB 3509

Relating to coordinated care organization reserves.

2025 Regular Session Introduced by Travis Nelson

HB 3509 modifies Oregon Coordinated Care Organization reserve requirements, affecting how Medicaid health plans manage financial cushions and reinvestment capacity.

In committee upon adjournment.
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Bill Summary · HB 3509

Legislative bill overview

HB 3509 addresses how Coordinated Care Organizations (CCOs) in Oregon manage their financial reserves. The bill likely establishes requirements or modifications regarding how much money these healthcare organizations must maintain in reserve accounts and how those reserves can be used. CCOs are regional health plans that manage Oregon's Medicaid population.

Why is this important

CCO reserves directly affect healthcare delivery capacity and financial stability in Oregon's Medicaid system, which covers roughly 1 in 4 Oregonians. How reserves are regulated impacts both the solvency of these organizations and their ability to invest in care improvements, mental health services, and community health programs. Reserve policies also influence whether excess funds return to the state or remain with organizations.

Potential points of contention

  • Reserve adequacy vs. fund diversion: Debate over whether current reserve levels are appropriate to protect enrollees or whether excess reserves should be redirected to state programs
  • Operational flexibility: Disagreement about how much discretion CCOs should have in deploying reserves versus state mandates on reserve levels
  • Behavioral health funding: Given the bill's referral to the Behavioral Health committee, potential tension around whether reserves should be allocated specifically to mental health services expansion

Compiled from official sources — confirm details with the bill’s official record.

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