OR HB3509

Creates the Community Escrow Fund in the State Treasury to hold coordinated care organization (CCO) restricted reserves, with each CCO having a designated subaccount within the fund

Oregon Health Authority will withhold amounts from CCO global budget payments to build subaccount balances, calculated to reach required restricted reserve levels ($250,000 plus 50% of liabilities above $250,000) by January 1, 2029

CCOs may request payments from their subaccounts to cover costs not accounted for in their global budgets, subject to criteria adopted by OHA

During the transition period (until January 1, 2029), CCOs may spend their existing restricted reserves on operating expenses up to the amount withheld by OHA

Removes the requirement for CCOs to maintain restricted reserves independently, shifting that responsibility to the state-managed escrow fund, while maintaining existing capital and surplus requirements of at least $2,500,000