Oregon House of Representatives Votes to Dissolve Cover Oregon

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Senate Bill 1 passes with strong bipartisan support, heads to Governor Brown.

Last week the Oregon House of Representatives voted to abolish Cover Oregon as a public corporation and transfer management of the state’s health insurance exchange to the Department of Consumer and Business Services.

After continual missteps by Cover Oregon and their private contractors, legislative leaders called for the abolition of Cover Oregon last year. In November, Senate President Peter Courtney (D-Salem) and House Speaker Tina Kotek (D – Portland) appointed a joint committee to develop legislation that would shut down Cover Oregon and transition its remaining functions to ensure Oregon has a viable, accountable state healthcare exchange going forward. Senate Bill 1 was the product of that bipartisan, bicameral committee.

Today’s bipartisan 42-14 vote was the bill’s final legislative approval. It now moves to Governor Brown for her signature.

“This legislation will add much-needed transparency and accountability to Oregon’s healthcare marketplace,” Speaker Kotek said. “Oregon has made significant strides in expanding access to quality, affordable healthcare for Oregonians, and this transition will keep us on that path.”

By moving the marketplace under the management of the Department of Business and Consumer Services, Senate Bill 1 ensures that the state exchange will be subject to financial management statutes, personnel laws, state contracting laws, restrictions on purchasing, and oversight by the Legislature.

“We developed a straightforward, broadly supported bill, and the Legislature is doing the right thing for Oregonians by getting this done now,” said Rep. Mitch Greenlick (D – Portland), House co-chair of the Joint Committee on Health Insurance Transition.

“Cover Oregon needs to be abolished, and Senate Bill 1 is the way to do it,” said Rep. Bill Kennemer (R-Oregon City), House co-vice chair of the joint committee. “This bill maintains Oregon’s status as a state-based exchange, increases legislative oversight of exchange functions, and ensures Oregonians will continue to have access to the health insurance coverage they need.”

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