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Coordinated Care Organizations seek longer contracts amid federal uncertainty; OHA offers limited extension
Summary
CCOs asked the committee to extend contract lengths from five to ten years or to give the Oregon Health Authority flexibility to delay procurement. Proponents said longer contracts provide stability for communities and allow long‑term investments; OHA said it is prepared to extend existing contracts two years if given statutory flexibility. The
Representatives of Oregon’s coordinated care organizations told the House Committee on Behavioral Health and Health Care that the state should extend contract lengths or give the Oregon Health Authority (OHA) the flexibility to delay procurement amid federal policy uncertainty.
Dan Cushing, government affairs director for Yamhill Community Care, said CCOs were created to encourage upstream investment and prevention, and that five‑year contracts force short‑term planning. “Our community feels that 10 years is appropriate given that the CCO model isn’t really an experiment anymore,” Cushing said. He and other CCO witnesses urged passage of House Bill 2205 or acceptance of a dash‑1 amendment that would set a minimum initial term of five years while allowing the agency limited flexibility.
Witnesses including CareOregon, HealthShare and AllCare said procurement is resource‑intensive — costing both CCOs and the state significant staff time and money — and that a delayed procurement or a statutory minimum term would provide needed certainty for members and providers. Several CCO representatives referenced required RFI timelines and additional federal waivers (e.g., the Section 1115 waiver) that make planning harder under a firm procurement timetable.
The Oregon Health Authority said it has advanced operational work on procurement — including a requested RFI and an operational snapshot — and told the committee it could commit to a two‑year extension of the current contract if the legislature provides the flexibility in statute. OHA emphasized procurement can be an accountability mechanism but also said contract amendments and rules can advance policy outside procurement.
The public hearing closed with stakeholders agreeing to continue interagency work. No formal committee vote occurred during the hearing.
