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Heated hearing on HB 4,003 over transition of Oregon’s Medicaid 'prioritized list' into state plan

House Committee on Healthcare · February 3, 2026
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Summary

The House Healthcare Committee heard extensive pro and con testimony on HB 4,003, a technical bill to move the Medicaid prioritized list from an 1115 waiver into the state plan and remove the statutory "funding line" and ranking. OHA said the measure is needed for federal compliance and preserves HERC's clinical role; former Governor Kitzhaber and many providers urged caution, warning of loss of transparency and added administrative burden.

House Bill 4,003 drew some of the most extended debate of the evening as the Oregon Health Authority explained a federally required transition: CMS directed that Oregon phase out certain features of the prioritized list by Jan. 1, 2027 and align the benefit package with a state plan amendment. OHA Director Sejal Hathy and Oregon Medicaid Director Emma Sando told the committee the bill removes the funding line and formal ranking from statute while preserving the Health Evidence Review Commission’s (HERC) role in developing clinical criteria, scope, amount and duration for…

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