Chapter 373 Oregon Laws 2009

AN ACT

HB 2755

Relating to reinsurance.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) The Department of Consumer and Business Services, in collaboration with the Office for Oregon Health Policy and Research, shall conduct a study of options available for utilizing reinsurance and other mechanisms for spreading risk in the individual and small employer group health insurance markets. The department shall consider whether:

          (a) A single state reinsurance plan is feasible and whether it would offer value to individual and small employer group health insurance markets and allow for savings to be passed on to consumers;

          (b) Health insurance markets other than individual and small employer group health insurance markets would benefit from reinsurance alternatives; and

          (c) Reinsurance alternatives adopted in other states and being considered by the federal government could be implemented in Oregon.

          (2) The department may collaborate with other state agencies that have the expertise to assist the department in conducting the study and analyzing the options.

          (3) The department shall prepare a report containing:

          (a) The results of the study.

          (b) Proposals for reinsurance alternatives that would:

          (A) Facilitate guaranteed issue in the individual market;

          (B) Facilitate the ability of employees of small employers to have a range of available health insurance options;

          (C) Spread risk and stabilize individual and small employer group health insurance markets;

          (D) Allow insurers to compete based on quality and efficiency instead of the health status of their enrollees; and

          (E) Reduce the costs to purchasers of health insurance.

          (c) Recommendations for enabling legislation required to implement the proposals.

          (4) The department shall report on the status of the study to the Legislative Assembly no later than October 1, 2010, and shall submit the report described in subsection (3) of this section to the Legislative Assembly no later than December 1, 2010.

Approved by the Governor June 18, 2009

Filed in the office of Secretary of State June 18, 2009

Effective date January 1, 2010

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