OR HB4127

Oregon Health Authority must establish a state-funded fee-for-service payment system for nonprofit reproductive health care providers that are enrolled in Medicaid but ineligible to receive federal Medicaid funds

OHA assumes sole payment responsibility for these "prohibited entities," including for services provided to coordinated care organization members, using only state funds

Applies retroactively to unpaid claims for services provided on or after July 4, 2025, that were not eligible for federal financial participation

Coordinated care organizations that paid claims to prohibited entities between July 4, 2025 and the bill's effective date may not recover those payments solely based on federal Medicaid ineligibility

A contingency grant program becomes operative if future state or federal law prohibits these entities from enrolling in Medicaid, with grants equivalent to fee-for-service payment amounts