2017 ORS 743B.001¹

As used in this section and ORS 743.008 (Reporting requirements), 743.035 (Uniform prior authorization form for prescription drug benefits), 743B.195 (Enforcement of Newborns’ and Mothers’ Health Protection Act of 1996), 743B.197 (Health Care Consumer Protection Advisory Committee), 743B.200 (Requirements for insurers offering managed health insurance), 743B.202 (Requirements for insurers offering managed health or preferred provider organization insurance), 743B.204 (Required managed health insurance contract provision), 743B.220 (Requirements for insurers that require designation of participating primary care physician), 743B.225 (Continuity of care), 743B.227 (Referrals to specialists), 743B.250 (Required notices to applicants and enrollees), 743B.252 (External review), 743B.253 (Director to contract with independent review organizations to provide external review), 743B.254 (Notice to enrollee of right to sue if insurer does not follow decision of independent review organization), 743B.255 (Enrollee application for external review), 743B.256 (Duties of independent review organizations), 743B.257 (Civil penalty for failure to comply by insurer that agreed to be bound by decision), 743B.258 (Private right of action), 743B.310 (Rescinding coverage), 743B.400 (Decisions regarding health care facility length of stay, level of care and follow-up care), 743B.403 (Insurer prohibited practices), 743B.405 (Medical services contract provisions), 743B.420 (Prior authorization requirements), 743B.422 (Utilization review requirements for medical services contracts to which insurer not party), 743B.423 (Utilization review requirements for insurers offering health benefit plan), 743B.424 (Applicability), 743B.450 (Prompt payment of claims), 743B.451 (Refund of paid claims), 743B.452 (Interest on unpaid claims), 743B.453 (Underpayment of claims), 743B.454 (Claims submitted during credentialing period), 743B.505 (Provider networks), 743B.550 (Disclosure of information) and 743B.555 (Confidential communications):

(1) “Adverse benefit determination” means an insurer’s denial, reduction or termination of a health care item or service, or an insurer’s failure or refusal to provide or to make a payment in whole or in part for a health care item or service, that is based on the insurer’s:

(a) Denial of eligibility for or termination of enrollment in a health benefit plan;

(b) Rescission or cancellation of a policy or certificate;

(c) Imposition of a preexisting condition exclusion as defined in ORS 743B.005 (Definitions), source-of-injury exclusion, network exclusion, annual benefit limit or other limitation on otherwise covered items or services;

(d) Determination that a health care item or service is experimental, investigational or not medically necessary, effective or appropriate; or

(e) Determination that a course or plan of treatment that an enrollee is undergoing is an active course of treatment for purposes of continuity of care under ORS 743B.225 (Continuity of care).

(2) “Authorized representative” means an individual who by law or by the consent of a person may act on behalf of the person.

(3) “Credit card” has the meaning given that term in 15 U.S.C. 1602.

(4) “Electronic funds transfer” has the meaning given that term in ORS 293.525 (Payments to and by state agencies by electronic funds transfers).

(5) “Enrollee” has the meaning given that term in ORS 743B.005 (Definitions).

(6) “Essential community provider” has the meaning given that term in rules adopted by the Department of Consumer and Business Services consistent with the description of the term in 42 U.S.C. 18031 and the rules adopted by the United States Department of Health and Human Services, the United States Department of the Treasury or the United States Department of Labor to carry out 42 U.S.C. 18031.

(7) “Grievance” means:

(a) A communication from an enrollee or an authorized representative of an enrollee expressing dissatisfaction with an adverse benefit determination, without specifically declining any right to appeal or review, that is:

(A) In writing, for an internal appeal or an external review; or

(B) In writing or orally, for an expedited response described in ORS 743B.250 (Required notices to applicants and enrollees) (2)(d) or an expedited external review; or

(b) A written complaint submitted by an enrollee or an authorized representative of an enrollee regarding the:

(A) Availability, delivery or quality of a health care service;

(B) Claims payment, handling or reimbursement for health care services and, unless the enrollee has not submitted a request for an internal appeal, the complaint is not disputing an adverse benefit determination; or

(C) Matters pertaining to the contractual relationship between an enrollee and an insurer.

(8) “Health benefit plan” has the meaning given that term in ORS 743B.005 (Definitions).

(9) “Independent practice association” means a corporation wholly owned by providers, or whose membership consists entirely of providers, formed for the sole purpose of contracting with insurers for the provision of health care services to enrollees, or with employers for the provision of health care services to employees, or with a group, as described in ORS 731.098 (“Group health insurance”), to provide health care services to group members.

(10) “Insurer” includes a health care service contractor as defined in ORS 750.005 (Definitions).

(11) “Internal appeal” means a review by an insurer of an adverse benefit determination made by the insurer.

(12) “Managed health insurance” means any health benefit plan that:

(a) Requires an enrollee to use a specified network or networks of providers managed, owned, under contract with or employed by the insurer in order to receive benefits under the plan, except for emergency or other specified limited service; or

(b) In addition to the requirements of paragraph (a) of this subsection, offers a point-of-service provision that allows an enrollee to use providers outside of the specified network or networks at the option of the enrollee and receive a reduced level of benefits.

(13) “Medical services contract” means a contract between an insurer and an independent practice association, between an insurer and a provider, between an independent practice association and a provider or organization of providers, between medical or mental health clinics, and between a medical or mental health clinic and a provider to provide medical or mental health services. “Medical services contract” does not include a contract of employment or a contract creating legal entities and ownership thereof that are authorized under ORS chapter 58, 60 or 70, or other similar professional organizations permitted by statute.

(14)(a) “Preferred provider organization insurance” means any health benefit plan that:

(A) Specifies a preferred network of providers managed, owned or under contract with or employed by an insurer;

(B) Does not require an enrollee to use the preferred network of providers in order to receive benefits under the plan; and

(C) Creates financial incentives for an enrollee to use the preferred network of providers by providing an increased level of benefits.

(b) “Preferred provider organization insurance” does not mean a health benefit plan that has as its sole financial incentive a hold harmless provision under which providers in the preferred network agree to accept as payment in full the maximum allowable amounts that are specified in the medical services contracts.

(15) “Prior authorization” means a determination by an insurer prior to provision of services that the insurer will provide reimbursement for the services. “Prior authorization” does not include referral approval for evaluation and management services between providers.

(16)(a) “Provider” means a person licensed, certified or otherwise authorized or permitted by laws of this state to administer medical or mental health services in the ordinary course of business or practice of a profession.

(b) With respect to the statutes governing the billing for or payment of claims, “provider” also includes an employee or other designee of the provider who has the responsibility for billing claims for reimbursement or receiving payments on claims.

(17) “Utilization review” means a set of formal techniques used by an insurer or delegated by the insurer designed to monitor the use of or evaluate the medical necessity, appropriateness, efficacy or efficiency of health care services, procedures or settings. [Formerly 743.801; 2017 c.101 §54; 2017 c.384 §10]

1 Legislative Counsel Committee, CHAPTER 743B—Health Benefit Plans: Individual and Group, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors743B.­html (2017) (last ac­cessed Mar. 30, 2018).
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.