Senate committee hears hours of testimony on bill to exclude public‑payer healthcare receipts from corporate activities tax

Summary

Senate Bill 125 would exempt reimbursements from public programs and certain physician‑administered drugs from Oregon’s corporate activities tax (CAT). Supporters say the change protects independent providers and patient access; opponents warn it will cut Student Success Fund revenue unless paired with revenue offsets.

Senator Mark Meek, chair of the Senate Committee on Finance and Revenue, opened a public hearing on Senate Bill 125 on May 28, 2025, saying the bill would exempt reimbursements from public programs and certain clinician‑administered drugs from the corporate activities tax (CAT).

The bill, Meek told the committee, would “exempt reimbursements from public programs like the Oregon Health Plan, Medicare Advantage, TRICARE, and others from the CAT,” and would apply to tax years beginning on or after Jan. 1, 2026, and before Jan. 1, 2032.

Supporters — including independent physicians, oncology and specialty clinics, and health‑care trade groups — said taxing public‑payer reimbursements and high‑cost administered drugs is forcing independent practices to close or be absorbed by hospital systems, reducing local access to care. “Our cost for that drug…

Senate committee hears hours of testimony on bill to exclude public‑payer healthcare receipts from corporate activities tax

Summary

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