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-83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session
-A-Engrossed
-House Bill 4127
-Ordered by the House February 17
-Including House Amendments dated February 17
-Sponsored by Representatives BOWMAN, ANDERSEN,  Senator PATTERSON, Representatives CHAICHI,
-CHOTZEN, DOBSON, NOSSE, RIEKE SMITH, Senators CAMPOS, FREDERICK, PROZANSKI; Representatives
-FRAGALA, GAMBA, GOMBERG, GRAYBER, HUDSON, JAVADI, MARSH,  MUNOZ, NATHANSON, NELSON,
-PHAM H, WALTERS, WISE, Senators GELSER BLOUIN, GOLDEN,  JAMA, NERON MISSLIN, PHAM K
-(Presession filed.)
-SUMMARY
-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. It is an editor’s brief statement of the essential features of the
-measure. The statement includes a measure digest written in compliance with applicable readability standards.
-Digest: The Act allows OHA to pay health care providers  that may not receive federal Medicaid
-funds. The Act requires OHA to pay providers using only state funds.  (Flesch Readability Score:
-62.7).
-Requires the Oregon Health Authority to adopt a payment mechanism  to pay certain nonprofit
-reproductive health care providers that are not eligible to receive federal Medicaid funds for ser-
-vices provided to medical assistance recipients. Applies to claims for payment for services  provided
-on or after July 4, 2025, if the claim is not eligible for  federal financial participation and has not
-yet been paid.
-Declares an emergency, effective on passage.
-A BILL FOR AN ACT
-Relating to Medicaid payments to reproductive health care providers; and declaring an emergency.
-Be It Enacted by the People of the State of Oregon:
-SECTION 1.
-Section 2 of this 2026 Act is added to and made a part of ORS chapter 414.
-SECTION 2. (1) As used in this section,  “prohibited entity” means a nonprofit reproduc-
-tive health care provider that is:
-(a) Enrolled in the state medical assistance program; and
-(b) Not eligible to receive federal Medicaid funds.
-(2) The Oregon Health Authority shall adopt a payment  mechanism to pay prohibited
-entities on a fee-for-service basis for services provided to medical assistance recipients.
-(3) The authority shall have sole responsibility to pay a prohibited entity  under this sec-
-tion, including for services provided to a member of a coordinated care organization.
-(4) The authority may  not pay a prohibited entity under this section using federal
-Medicaid funds.
-(5) In adopting the payment mechanism described  in subsection (2) of this section, the
-authority shall:
-(a) Update, as necessary, the authority’s billing and claims processing systems; and
-(b) Ensure that provider enrollment and credentialing  requirements for prohibited enti-
-ties align with existing standards in the state medical assistance program.
-(6) At  least once each biennium, the authority shall conduct a rate analysis to ensure
-that the rates paid  to a prohibited entity under this section are adequate to promote access
-to reproductive health services.
-NOTE: 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 179
-A-Eng. HB 4127
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-SECTION 3.
-Section 2 of this 2026 Act  applies to claims for payment in the state medical
-assistance program for services provided by a prohibited entity on or after July 4, 2025, if:
-(1) The claim is not eligible for federal financial participation; and
-(2) The prohibited entity has not yet received payment on the claim.
-SECTION 4.
-(1) As used in this section:
-(a) “Coordinated care organization” has the meaning given that term in ORS 414.025.
-(b) “Prohibited entity” has the meaning given that term in section 2 of this 2026 Act.
-(2) If  a coordinated care organization paid a claim submitted by a prohibited entity be-
-tween July 4, 2025, and the effective date of this 2026 Act, the coordinated care  organization
-may recover an overpayment on the claim for  routine business reasons but may not recover
-payment on the claim solely on the basis that the prohibited  entity is not eligible to receive
-federal Medicaid funds.
-SECTION 5.
-Section 4 of this 2026 Act is repealed on January 2, 2028.
-SECTION 6. (1) As used in this section:
-(a) “Medical assistance” has the meaning given that term in ORS 414.025.
-(b) “Prohibited entity” means a nonprofit reproductive health care provider that:
-(A) Received more than $800,000 in Medicaid reimbursements in 2023; and
-(B) Is not eligible to receive federal Medicaid funds.
-(2) The Oregon Health  Authority shall implement a grant program to support prohibited
-entities in covering  the costs of providing services to medical assistance recipients. To the
-extent practicable, the amount of a grant awarded under this section shall be equivalent to
-the funding amount that a prohibited entity would receive in the  authority’s fee-for-service
-payment system.
-(3) The authority may not award grants under this section using federal Medicaid funds.
-SECTION 7.
-(1) Section 6  of this 2026 Act becomes operative only if a state or federal law,
-rule, regulation or other government action is enacted, adopted or  taken that prohibits a
-prohibited entity, as defined in section 2 of this 2026 Act, from maintaining  enrollment in the
+HB 4127-3
+(LC 179)
+2/9/26 (RH/ps)
+Requested by Representative BOWMAN
+PROPOSED AMENDMENTS TO
+HOUSE BILL 4127
+On page 2
+ of the printed bill, delete line 14 and insert:
+“(b) ‘Prohibited entity’  means a nonprofit reproductive health care pro-
+vider that:
+“(A) Received more  than $800,000 in Medicaid reimbursements in 2023;
+and
+“(B) Is not eligible to receive federal Medicaid funds.”.
+Delete lines 21 through 27 and insert:
+“SECTION 7.
+(1) Section 6 of this 2026 Act becomes operative only
+if a state or federal law, rule, regulation or other government  action
+is enacted, adopted or  taken that prohibits a prohibited entity, as de-
+fined in section 2 of this 2026 Act, from maintaining enrollment in the
 state medical assistance program.
-(2) If  a state or federal law, rule, regulation or other government action described in
-subsection (1) of this section is enacted, adopted or taken, section 6 of this 2026  Act becomes
-operative on the effective date of that law, rule, regulation or other government action.
-(3) The Oregon  Health Authority shall immediately notify the Legislative Counsel if a
-state or federal law, rule, regulation or other  government action described in subsection (1)
-of this section is enacted, adopted or taken.
-SECTION 8. This 2026 Act being necessary for the immediate preservation of the public
-peace, health and safety, an emergency is declared to exist,  and this 2026 Act takes effect
-on its passage.
-[2]
+“(2) If a state or federal law, rule, regulation  or other government
+action described in subsection (1) of  this section is enacted, adopted
+or taken, section 6 of this 2026 Act becomes operative on the  effective
+date of that law, rule, regulation or other government action.
+“(3) The Oregon Health Authority shall immediately  notify the
+Legislative Counsel if a state or federal law, rule, regulation or  other
+government action described in subsection (1)  of this section is en-
+acted, adopted or taken. ”.