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Committee formally introduces LC 300 on downcoding and LC 301 on cybersecurity reporting
Summary
The Joint Legislative Committee on Information Management and Technology voted to introduce two committee bills: LC 300 would require insurers to notify providers when AI or automated tools downcode claims and provide an appeals process; LC 301 would require non‑state public bodies to notify the state CIO of security or ransomware incidents within 48 hours.
Co‑chairs of the Joint Legislative Committee on Information Management and Technology moved and the committee adopted a pair of committee bills for introduction during the 2026 legislative session.
The committee voted to introduce LC 300, a bill aimed at addressing insurers’ use of artificial intelligence and automated technologies to “downcode” medical claims — that is, reclassify or reduce the reimbursement level of provider claims based on algorithmic review. The concept described to the committee would require insurers offering health benefit plans in Oregon to notify a provider each time the insurer uses AI or other automated technology to downcode a claim and to make an appeals process available to providers whose claims were automatically downcoded.
The committee also approved introduction of LC 301, described as a cybersecurity reporting measure. As presented, LC 301 would require local governments, K‑12 schools, community colleges and other non‑state public bodies to notify the state chief information officer and submit a report within 48 hours of an information‑security or ransomware incident. The concept would prescribe required report fields, direct the state CIO to establish a secure reporting system, and exempt those incident reports from public‑records disclosure while allowing confidential information sharing with law enforcement and designated cybersecurity partners.
Committee members discussed process and policy questions before the vote. One member recommended a joint referral to a health committee for LC 300, noting the bill touches clinical billing and provider practices; co‑chair Nathanson said the committee could ask staff to communicate that interest to the presiding officers. No amendment was adopted at the meeting.
The clerk recorded a roll call and members present voted to approve the motion to introduce both concepts as committee house measures for the 2026 session. The motion was adopted and the committee closed the LC 300/LC 301 work session.
Next steps: introduction as committee bills during the 2026 session and subsequent referral to standing committees and any drafting or amendment work by Legislative Counsel.
