Oregon HB4040 Healthcare Bill Signed by Governor

Oregon Legislative Events

Published April 7th, 2026

Detected April 8th, 2026

Summary

Oregon Governor signed HB4040 into law on April 7, 2026, making sweeping changes to healthcare delivery, provider licensing, insurance coverage mandates, and pharmacy regulations. The bill modifies requirements for hospital financial assistance screening, home health agency Medicare compliance, residential care facility administrator licensing, Medicaid coverage including prior authorization for complex rehabilitation technology repairs under $1,500, and dental practice supervision. It also mandates insurance coverage for medically necessary anesthesia services regardless of duration, establishes rules for dental insurer claims handling, and modifies the Prescription Drug Affordability Board's insulin affordability determination process.

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What changed

HB4040 modifies healthcare delivery across multiple domains: it changes presumptive eligibility screening for hospital patients, exempts certain home health agencies from Medicare conditions of participation, modifies residential care quality measurement reporting, removes the bachelor's degree requirement for residential care facility administrator applicants, allows incarcerated individuals to receive prerelease Medicaid benefits, prohibits prior authorization for complex rehabilitation technology repairs under $1,500, and modifies Health Evidence Review Commission procedures. The bill also expands dentist supervision allowances for out-of-state students, includes new dental insurer claims handling rules, and modifies the Prescription Drug Affordability Board's insulin review process.

Healthcare providers, facilities, and insurers must adapt operations to comply with new mandates effective immediately upon signing. Providers face modified licensing pathways and updated quality reporting obligations. Insurers must cover anesthesia services without duration limits and follow specific dental claims rules. Pharmacy services organizations should verify their third-party administrator registration status under modified exemptions. The bill's emergency declaration means all provisions take effect immediately, requiring rapid implementation by affected parties.

What to do next

Healthcare providers and facilities must update financial assistance screening processes and monitor new prior authorization exemptions
Insurers must implement expanded anesthesia coverage mandates and updated dental claims processing rules
Pharmacy services organizations should review exemptions from third-party administrator registration requirements

Source document (simplified)

ChangeBridge / Oregon / HB4040 Signed by Governor HB4040 House Bill Signed by Governor 2026-04-07

Relating to health care; and declaring an emergency.

The Act changes the rules for how certain health care is given in this state. The Act alters how certain health care providers are licensed or regulated. The Act changes some insurance rules. The Act changes some pharmacy and drug rules. The Act takes effect when signed. (Flesch Readability Score: 79.7). Modifies the requirements for screening a hospital patient for presumptive eligibility for financial assistance. [Prohibits the Oregon Health Authority from requiring certain home health agencies to comply with Medicare conditions of participation.] [Modifies the requirements for how the Department of Human Services must publish Residential Care Quality Measurement Program data.] Removes the requirement that an applicant for a residential care facility administrator license hold a bachelor's degree in a health or social service related field. Allows a person residing in a correctional facility to receive prerelease medical assistance benefits under certain circumstances. [Prohibits the authority or a coordinated care organization from requiring prior authorization for medical assistance coverage for repairing complex rehabilitation technology if the repair costs $1,500 or less.] Modifies the requirements for meetings held by the Health Evidence Review Commission. Modifies the composition of the Medicaid Advisory Committee. Modifies the eligibility requirements for parent providers who are paid to provide attendant care services to their children. See A-Eng Bill for omitted text. Allows a full-time dentistry student enrolled in an out-of-state dental education program to practice dentistry without a license if the student is supervised by a faculty member of a dental education program accredited by the Commission on Dental Accreditation of the American Dental Association. Requires casualty or health insurance policies to provide coverage for medically necessary anesthesia services, regardless of duration, for any covered procedures. Requires dental insurers to follow certain rules for payment and denial of claims. Requires the Legislative Policy and Research Director to develop and propose to the [Legislative Policy and Research Committee] committees with jurisdiction over health care an insurance coverage mandate impact statement policy. Directs the [committee] committees to perform due diligence in considering the proposal and authorizes the [committee] committees to modify the proposal if the [committee] committees so [determines] determine, and then to adopt the policy. Repeals requirement that enrollees in individual or group policies or certificates of health insurance [or members of coordinated care organizations] be assigned by their insurer [or organization] to primary care providers under certain circumstances. Specifies exemptions from the requirement that pharmacy services administrative organizations must register with the Department of Consumer and Business Services as third party administrators. See A-Eng Bill for omitted text. Modifies requirements for the Prescription Drug Affordability Board's annual affordability determination for insulin products. Allows licensees of the Occupational Therapy Licensing Board and the Oregon Board of Physical Therapy to provide psilocybin services as licensed psilocybin service facilitators while providing occupational therapy or physical therapy services. See A-Eng Bill for omitted text. Lowers the age at which a naturopathic physician may request a retired license status from 70 years of age to [60] 65 years of age. Includes nurse practitioners and physician associates in the definition of "attending physician" for purposes of the treatment of workers’ compensable injuries. Declares an emergency, effective on passage.

Bill Details

State Oregon

Session 2026 Legislative Measures

Chamber House

Official Source olis.oregonlegislature.gov/liz/2026R1/Meas...

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Action History

2026-04-07 H Governor signed. 2026-03-10 S President signed. 2026-03-10 H Speaker signed. 2026-03-05 S Third reading. Carried by Patterson. Passed. Ayes, 27; Nays, 1--Robinson; Excused, 2--Drazan, Hayden. 2026-03-04 S Second reading. 2026-03-04 S Recommendation: Do pass the A-Eng. bill. 2026-03-03 S Referred to Ways and Means. 2026-03-03 S First reading. Referred to President's desk. 2026-03-03 H Third reading. Carried by Nosse. Passed. Ayes, 55; Excused, 2--Hartman, Valderrama; Excused for Business of the House, 3--Elmer, Reschke, Skarlatos. 2026-03-02 H Second reading. 2026-02-27 H Recommendation: Do pass. 2026-02-27 H Work Session held. 2026-02-25 H Returned to Full Committee. 2026-02-25 H Work Session held. 2026-02-18 H Assigned to Subcommittee On Human Services. 2026-02-16 H Referred to Ways and Means by order of Speaker. 2026-02-16 H Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Ways and Means. 2026-02-12 H Work Session held. 2026-02-10 H Public Hearing held. 2026-02-05 H Public Hearing held. 2026-02-02 H Referred to Health Care. 2026-02-02 H First reading. Referred to Speaker's desk.

Votes

2026-02-12 House Committee Do pass with amendments and be referred to Ways and Means. (Printed A-Eng.) Yea: 8 Nay: 0 2026-02-27 House Committee Do Pass the A-Eng bill Yea: 24 Nay: 0 2026-03-03 House Third Reading Yea: 55 Nay: 0 2026-03-05 Senate Third Reading Yea: 27 Nay: 1

Committee Referrals

2026-02-02 H Health Care 2026-02-16 J Ways and Means 2026-02-18 J Human Services 2026-03-03 J Ways and Means

Amendments

2026-02-05 House Committee On Health Care Amendment #-1 2026-02-05 House Committee On Health Care Amendment #-3 2026-02-05 House Committee On Health Care Amendment #-6 2026-02-05 House Committee On Health Care Amendment #-7 2026-02-05 House Committee On Health Care Amendment #-8 2026-02-05 House Committee On Health Care Amendment #-11 2026-02-05 House Committee On Health Care Amendment #-13 2026-02-05 House Committee On Health Care Amendment #-14 2026-02-05 House Committee On Health Care Amendment #-15 2026-02-05 House Committee On Health Care Amendment #-16 2026-02-05 House Committee On Health Care Amendment #-10 2026-02-05 House Committee On Health Care Amendment #-17 2026-02-05 House Committee On Health Care Amendment #-21 2026-02-05 House Committee On Health Care Amendment #-19 2026-02-05 House Committee On Health Care Amendment #-18 2026-02-05 House Committee On Health Care Amendment #-9 2026-02-10 House Committee On Health Care Amendment #22 2026-02-10 House Committee On Health Care Amendment #12 2026-02-10 House Committee On Health Care Amendment #27 2026-02-10 House Committee On Health Care Amendment #-27 2026-02-12 House Committee On Health Care Amendment #-17 2026-02-12 House Committee On Health Care Amendment #-6 2026-02-12 House Committee On Health Care Amendment #-15 2026-02-12 House Committee On Health Care Amendment #-12 2026-02-12 House Committee On Health Care Amendment #-25 2026-02-12 House Committee On Health Care Amendment #-3 2026-02-12 House Committee On Health Care Amendment #-33 2026-02-12 House Committee On Health Care Amendment #-11 2026-02-12 House Committee On Health Care Amendment #-7 2026-02-12 House Committee On Health Care Amendment #-24 2026-02-12 House Committee On Health Care Amendment #-14 2026-02-12 House Committee On Health Care Amendment #-16 2026-02-12 House Committee On Health Care Amendment #-32 2026-02-12 House Committee On Health Care Amendment #-19 2026-02-12 House Committee On Health Care Amendment #-13 Adopted 2026-02-12 House Committee On Health Care Amendment #-30 2026-02-12 House Committee On Health Care Amendment #-34 Adopted 2026-02-12 House Committee On Health Care Amendment #-35 2026-02-12 House Committee On Health Care Amendment #-36 Adopted

Bill Text Versions

0000-00-00 Introduced 0000-00-00 Introduced 0000-00-00 Engrossed 0000-00-00 Enrolled Legislative data powered by LegiScan (CC BY 4.0)

Named provisions

Screening for Financial Assistance Home Health Agency Requirements Residential Care Quality Measurement Residential Care Facility Administrator Licensing Medical Assistance for Incarcerated Individuals Complex Rehabilitation Technology Prior Authorization Health Evidence Review Commission Medicaid Advisory Committee Attendant Care Services Dental Practice Supervision Anesthesia Coverage Mandate Dental Insurer Claims Rules Insurance Coverage Mandate Impact Statement Primary Care Provider Assignment Repeal Pharmacy Services Administrative Organizations Prescription Drug Affordability Board Psilocybin Services Naturopathic Physician Retired License Workers Compensation Attending Physician Definition