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SB598 • 2025

Requires certain health insurance providers to ensure that coverage for a nonopioid prescription drug is available as an alternative for an opioid prescription drug and to use the same utilization review requirements and cost-sharing provisions for opioid and nonopioid drugs when they are prescribed for the same treatment.

Requires certain health insurance providers to ensure that coverage for a nonopioid prescription drug is available as an alternative for an opioid prescription drug and to use the same utilization review requirements and cost-sharing provisions for opioid and nonopioid drugs when they are prescribed for the same treatment.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Senator Campos, Senator Patterson,, Representative Chotzen,, Grayber,, Levy E,, Nelson,, Nosse,
Last action
2025-07-25
Official status
Chapter Number Assigned
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Requires certain health insurance providers to ensure that coverage for a nonopioid prescription drug is available as an alternative for an opioid prescription drug and to use the same utilization review requirements and cost-sharing provisions for opioid and nonopioid drugs when they are prescribed for the same treatment.

Digest: Tells some health insurers to cover a nonopioid drug alternate for an opioid drug with the same rules.

What This Bill Does

  • Digest: Tells some health insurers to cover a nonopioid drug alternate for an opioid drug with the same rules.
  • Tells the PTC to add to their suggestions a nonopioid drug alternate for an opioid drug with the same rules.
  • (Flesch Readability Score: 60.6).
  • Requires certain health insurance providers to ensure that coverage for a nonopioid prescription drug is available as an alternative for an opioid prescription drug and to use the same utilization review requirements and cost-sharing provisions for opioid and nonopioid drugs when they are prescribed for the same treatment.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-07-25 Senate

    Chapter 536, 2025 Laws.

  2. 2025-07-25 Senate

    Effective date, January 1, 2026.

  3. 2025-07-17 Senate

    Governor signed.

  4. 2025-06-27 Senate

    President signed.

  5. 2025-06-27 House

    Speaker signed.

  6. 2025-06-26 House

    Third reading. Carried by Grayber. Passed. Ayes, 45; Nays, 3--Boice, Elmer, Skarlatos; Excused, 8--Cate, Diehl, Harbick, McIntire, Nguyen H, Reschke, Wallan, Yunker; Excused for Business of the House, 4--Bowman, Kropf, Levy B, Pham H.

  7. 2025-06-25 House

    Recommendation: Do pass.

  8. 2025-06-25 House

    Second reading.

  9. 2025-06-23 Senate

    Third reading. Carried by Campos. Passed. Ayes, 23; Nays, 6--Bonham, Hayden, Linthicum, Robinson, Starr, Weber; Excused, 1--President Wagner.

  10. 2025-06-23 House

    First reading. Referred to Speaker's desk.

  11. 2025-06-23 House

    Referred to Ways and Means.

  12. 2025-06-20 Senate

    Second reading.

  13. 2025-06-19 Senate

    Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

  14. 2025-06-17 Senate

    Work Session held.

  15. 2025-06-12 Senate

    Work Session held.

  16. 2025-06-12 Senate

    Returned to Full Committee.

  17. 2025-06-07 Senate

    Assigned to Subcommittee On Human Services.

  18. 2025-04-15 Senate

    Recommendation: Do pass with amendments and be referred to Ways and Means. (Printed A-Eng.)

  19. 2025-04-15 Senate

    Referred to Ways and Means by order of the President.

  20. 2025-04-08 Senate

    Work Session held.

  21. 2025-03-11 Senate

    Public Hearing held.

  22. 2025-01-17 Senate

    Referred to Health Care.

  23. 2025-01-13 Senate

    Introduction and first reading. Referred to President's desk.

Official Summary Text

Digest: Tells some health insurers to cover a nonopioid drug alternate for an opioid drug with the same rules. Tells the PTC to add to their suggestions a nonopioid drug alternate for an opioid drug with the same rules. (Flesch Readability Score: 60.6).
Requires certain health insurance providers to ensure that coverage for a nonopioid prescription drug is available as an alternative for an opioid prescription drug and to use the same utilization review requirements and cost-sharing provisions for opioid and nonopioid drugs when they are prescribed for the same treatment.
Requires the Pharmacy and Therapeutics Committee to include nonopioid prescription drug alternatives to opioid prescription drugs with the same utilization review requirements when making recommendations to the Oregon Health Authority for the preferred drug list and Practitioner-Managed Prescription Drug Plan.
Relating to: Relating to step therapy for nonopioids.
Current location: Chapter Number Assigned

Current Bill Text

Read the full stored bill text
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
Senate Bill 598
Sponsored by Senator CAMPOS; Senator PATTERSON, Representatives CHOTZEN, GRAYBER,
LEVY E, NELSON, NOSSE (Presession filed.)
CHAPTER .................................................
AN ACT
Relating to step therapy for nonopioids; creating new provisions; and amending ORS 414.361, 750.055
and 750.333.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of the Insurance Code.
SECTION 2. (1) As used in this section:
(a) “Clinically appropriate” means supported by nationally recognized compendia, clinical
guidelines or generally recognized standards of care.
(b) “Compendia” mean those resources widely accepted by the medical profession in the
efficacious use of drugs.
(c) “Health care coverage” has the meaning given that term in ORS 743B.602.
(d) “Nonopioid prescription drug” means a drug that is prescribed for the treatment of
chronic or acute pain and is approved by the United States Food and Drug Administration.
(e) “Prior authorization,” “step therapy” and “utilization review” have the meanings
given those terms in ORS 743B.001.
(2) An entity that provides health care coverage for prescription drugs shall ensure that
the entity’s drug formulary provides coverage for at least one clinically appropriate
nonopioid prescription drug as an alternative for each opioid prescription drug.
(3) The coverage described in this section for nonopioid prescription drugs may be made
subject to, but may not be more restrictive than, the provisions for coverage for opioid pre-
scription drugs, including with respect to prior authorization, step therapy, other utilization
review requirements, cost-sharing, copayments, coinsurance and deductibles.
SECTION 3.
ORS 414.361 is amended to read:
414.361. (1) The Pharmacy and Therapeutics Committee shall advise the Oregon Health Au-
thority on:
(a) Adoption of rules to implement ORS 414.351 to 414.414 in accordance with ORS chapter 183.
(b) Implementation of the medical assistance program retrospective and prospective programs
as described in ORS 414.351 to 414.414, including the type of software programs to be used by the
pharmacist for prospective drug use review and the provisions of the contractual agreement between
the state and any entity involved in the retrospective program.
(c) Development of and application of the criteria and standards to be used in retrospective and
prospective drug use review in a manner that ensures that such criteria and standards are based
on compendia, relevant guidelines obtained from professional groups through consensus-driven
processes, the experience of practitioners with expertise in drug therapy, data and experience ob-
Enrolled Senate Bill 598 (SB 598-B)Page 1
tained from drug utilization review program operations. The committee shall have an open profes-
sional consensus process for establishing and revising criteria and standards. Criteria and standards
shall be available to the public. In developing recommendations for criteria and standards, the
committee shall establish an explicit ongoing process for soliciting and considering input from in-
terested parties. The committee shall make timely revisions to the criteria and standards based upon
this input in addition to revisions based upon scheduled review of the criteria and standards. Fur-
ther, the drug utilization review standards shall reflect the local practices of prescribers in order
to monitor:
(A) Therapeutic appropriateness.
(B) Overutilization or underutilization.
(C) Therapeutic duplication.
(D) Drug-disease contraindications.
(E) Drug-drug interactions.
(F) Incorrect drug dosage or drug treatment duration.
(G) Clinical abuse or misuse.
(H) Drug allergies.
(d) Development, selection and application of and assessment for interventions that are educa-
tional and not punitive in nature for medical assistance program prescribers, dispensers and pa-
tients.
(2) In reviewing retrospective and prospective drug use, the committee may consider only drugs
that have received final approval from the federal Food and Drug Administration.
(3) The committee shall make recommendations to the authority, subject to approval by the Di-
rector of the Oregon Health Authority or the director’s designee, for drugs to be included on any
preferred drug list adopted by the authority and on the Practitioner-Managed Prescription Drug
Plan. The committee shall also recommend all utilization controls, prior authorization requirements
or other conditions for the coverage of a drug.
(4) In making recommendations under subsection (3) of this section, the committee may use any
information the committee deems appropriate. The recommendations must be based upon the fol-
lowing factors in order of priority:
(a) Safety and efficacy of the drug.
(b) The ability of Oregonians to access effective prescription drugs that are appropriate for their
clinical conditions.
(c) Substantial differences in the costs of drugs within the same therapeutic class.
(5) In addition to the factors described in subsection (4) of this section, the committee,
in making a recommendation, shall ensure there is at least one clinically appropriate
nonopioid prescription drug available as an alternative for each opioid prescription drug and
ensure the utilization controls and prior authorization requirements are no more restrictive
for the nonopioid prescription drug than the utilization controls and prior authorization re-
quirements for the opioid prescription drug.
[(5)(a)] (6)(a) No later than seven days after the date on which the committee makes a recom-
mendation under subsection (3) of this section, the committee shall publish the recommendation on
the website of the authority.
(b) As soon as practicable after the committee makes a recommendation, the director shall de-
cide whether to approve, disapprove or modify the recommendation, shall publish the decision on the
website and shall notify persons who have requested notification of the decision.
(c) Except as provided in subsection [ (6)] (7) of this section, a recommendation approved by the
director, in whole or in part, with respect to the inclusion of a drug on a preferred drug list or the
Practitioner-Managed Prescription Drug Plan may not become effective less than seven days after
the date that the director’s decision is published on the website.
[(6)(a)] (7)(a) The director may allow the immediate implementation of a recommendation de-
scribed in subsection [ (5)(c)] (6)(c) of this section if the director determines that immediate imple-
mentation is necessary to protect patient safety or to comply with state or federal requirements.
Enrolled Senate Bill 598 (SB 598-B)Page 2
(b) The director shall reconsider any decision to approve, disapprove or modify a recommenda-
tion described in subsection [ (5)(c)] (6)(c) of this section upon the request of any interested person
filed no later than seven days after the director’s decision is published on the website of the au-
thority. The director’s determination regarding the request for reconsideration shall be sent to the
requester and posted to the website without undue delay. Upon receipt of a request for reconsider-
ation, the director may:
(A) Delay the implementation of the recommendation pending the reconsideration process; or
(B) Implement the recommendation if the director determines that delay could reasonably result
in harm to patient safety or would violate state or federal requirements.
(8) As used in this section, “clinically appropriate” and “nonopioid prescription drug”
have the meanings given those terms in section 2 of this 2025 Act.
SECTION 4.
ORS 414.361, as amended by section 4, chapter 628, Oregon Laws 2021, is amended
to read:
414.361. (1) The Pharmacy and Therapeutics Committee shall advise the Oregon Health Au-
thority on:
(a) Adoption of rules to implement ORS 414.351 to 414.414 in accordance with ORS chapter 183.
(b) Implementation of the medical assistance program retrospective and prospective programs
as described in ORS 414.351 to 414.414, including the type of software programs to be used by the
pharmacist for prospective drug use review and the provisions of the contractual agreement between
the state and any entity involved in the retrospective program.
(c) Development of and application of the criteria and standards to be used in retrospective and
prospective drug use review in a manner that ensures that such criteria and standards are based
on compendia, relevant guidelines obtained from professional groups through consensus-driven
processes, the experience of practitioners with expertise in drug therapy, data and experience ob-
tained from drug utilization review program operations. The committee shall have an open profes-
sional consensus process for establishing and revising criteria and standards. Criteria and standards
shall be available to the public. In developing recommendations for criteria and standards, the
committee shall establish an explicit ongoing process for soliciting and considering input from in-
terested parties. The committee shall make timely revisions to the criteria and standards based upon
this input in addition to revisions based upon scheduled review of the criteria and standards. Fur-
ther, the drug utilization review standards shall reflect the local practices of prescribers in order
to monitor:
(A) Therapeutic appropriateness.
(B) Overutilization or underutilization.
(C) Therapeutic duplication.
(D) Drug-disease contraindications.
(E) Drug-drug interactions.
(F) Incorrect drug dosage or drug treatment duration.
(G) Clinical abuse or misuse.
(H) Drug allergies.
(d) Development, selection and application of and assessment for interventions that are educa-
tional and not punitive in nature for medical assistance program prescribers, dispensers and pa-
tients.
(2) In reviewing retrospective and prospective drug use, the committee may consider only drugs
that have received final approval from the federal Food and Drug Administration.
(3) The committee shall make recommendations to the authority, subject to approval by the Di-
rector of the Oregon Health Authority or the director’s designee, for drugs to be included on any
preferred drug list adopted by the authority and on the Practitioner-Managed Prescription Drug
Plan. The committee shall also recommend all utilization controls, prior authorization requirements
or other conditions for the coverage of a drug.
Enrolled Senate Bill 598 (SB 598-B) Page 3
(4) In making recommendations under subsection (3) of this section, the committee may use any
information the committee deems appropriate. The recommendations must be based upon the fol-
lowing factors in order of priority:
(a) Safety and efficacy of the drug.
(b) The ability of Oregonians to access effective prescription drugs that are appropriate for their
clinical conditions.
(c) For mental health drugs, the recommendations of the Mental Health Clinical Advisory
Group.
(d) Substantial differences in the costs of drugs within the same therapeutic class.
(5) In addition to the factors described in subsection (4) of this section, the committee,
in making a recommendation, shall ensure there is at least one clinically appropriate
nonopioid prescription drug available as an alternative for each opioid prescription drug and
ensure the utilization controls and prior authorization requirements are no more restrictive
for the nonopioid prescription drug than the utilization controls and prior authorization re-
quirements for the opioid prescription drug.
[(5)(a)] (6)(a) No later than seven days after the date on which the committee makes a recom-
mendation under subsection (3) of this section, the committee shall publish the recommendation on
the website of the authority.
(b) As soon as practicable after the committee makes a recommendation, the director shall de-
cide whether to approve, disapprove or modify the recommendation, shall publish the decision on the
website and shall notify persons who have requested notification of the decision.
(c) Except as provided in subsection [ (6)] (7) of this section, a recommendation approved by the
director, in whole or in part, with respect to the inclusion of a drug on a preferred drug list or the
Practitioner-Managed Prescription Drug Plan may not become effective less than seven days after
the date that the director’s decision is published on the website.
[(6)(a)] (7)(a) The director may allow the immediate implementation of a recommendation de-
scribed in subsection [ (5)(c)] (6)(c) of this section if the director determines that immediate imple-
mentation is necessary to protect patient safety or to comply with state or federal requirements.
(b) The director shall reconsider any decision to approve, disapprove or modify a recommenda-
tion described in subsection [ (5)(c)] (6)(a) of this section upon the request of any interested person
filed no later than seven days after the director’s decision is published on the website of the au-
thority. The director’s determination regarding the request for reconsideration shall be sent to the
requester and posted to the website without undue delay. Upon receipt of a request for reconsider-
ation, the director may:
(A) Delay the implementation of the recommendation pending the reconsideration process; or
(B) Implement the recommendation if the director determines that delay could reasonably result
in harm to patient safety or would violate state or federal requirements.
(8) As used in this section, “clinically appropriate” and “nonopioid prescription drug”
have the meanings given those terms in section 2 of this 2025 Act.
SECTION 5.
ORS 750.055, as amended by section 3, chapter 24, Oregon Laws 2024, section 4,
chapter 35, Oregon Laws 2024, section 21, chapter 70, Oregon Laws 2024, and section 162, chapter
73, Oregon Laws 2024, is amended to read:
750.055. (1) The following provisions apply to health care service contractors to the extent not
inconsistent with the express provisions of ORS 750.005 to 750.095:
(a) ORS 705.137, 705.138 and 705.139.
(b) ORS 731.004 to 731.150, 731.162, 731.216 to 731.362, 731.382, 731.385, 731.386, 731.390, 731.398
to 731.430, 731.428, 731.450, 731.454, 731.485, as provided in subsection (2) of this section, ORS
731.488, 731.504, 731.508, 731.509, 731.510, 731.511, 731.512, 731.574 to 731.620, 731.640 to 731.652,
731.730, 731.731, 731.735, 731.737, 731.750, 731.752, 731.804, 731.808 and 731.844 to 731.992.
(c) ORS 732.215, 732.220, 732.230, 732.245, 732.250, 732.320, 732.325 and 732.517 to 732.596, not
including ORS 732.582, and ORS 732.650 to 732.689.
Enrolled Senate Bill 598 (SB 598-B) Page 4
(d) ORS 733.010 to 733.050, 733.080, 733.140 to 733.170, 733.210, 733.510 to 733.680 and 733.695
to 733.780.
(e) ORS 734.014 to 734.440.
(f) ORS 742.001 to 742.009, 742.013, 742.016, 742.061, 742.065, 742.150 to 742.162 and 742.518 to
742.542.
(g) ORS 743.004, 743.005, 743.007, 743.008, 743.010, 743.018, 743.020, 743.022, 743.023, 743.025,
743.028, 743.029, 743.038, 743.040, 743.044, 743.050, 743.100 to 743.109, 743.402, 743.405, 743.406,
743.417, 743.472, 743.492, 743.495, 743.498, 743.522, 743.523, 743.524, 743.526, 743.535, 743.550, 743.650
to 743.656, 743.680 to 743.689, 743.788 and 743.790.
(h) ORS 743A.010, 743A.012, 743A.014, 743A.020, 743A.034, 743A.036, 743A.040, 743A.044,
743A.048, 743A.051, 743A.052, 743A.058, 743A.060, 743A.062, 743A.063, 743A.064, 743A.065, 743A.066,
743A.068, 743A.070, 743A.080, 743A.082, 743A.084, 743A.088, 743A.090, 743A.100, 743A.104, 743A.105,
743A.108, 743A.110, 743A.124, 743A.140, 743A.141, 743A.148, 743A.150, 743A.160, 743A.168, 743A.169,
743A.170, 743A.175, 743A.185, 743A.188, 743A.190, 743A.192, 743A.250, 743A.252, 743A.260, 743A.310
and 743A.315 and section 2, chapter 771, Oregon Laws 2013, and section 2, chapter 70, Oregon Laws
2024.
(i) ORS 743B.001, 743B.003 to 743B.127, 743B.128, 743B.130, 743B.195, 743B.197, 743B.200,
743B.202, 743B.204, 743B.220, 743B.221, 743B.222, 743B.225, 743B.227, 743B.250, 743B.252, 743B.253,
743B.254, 743B.255, 743B.256, 743B.257, 743B.258, 743B.280 to 743B.285, 743B.287, 743B.300, 743B.310,
743B.320, 743B.323, 743B.330, 743B.340, 743B.341, 743B.342, 743B.343 to 743B.347, 743B.400, 743B.403,
743B.407, 743B.420, 743B.423, 743B.450, 743B.451, 743B.452, 743B.453, 743B.470, 743B.475, 743B.505,
743B.550, 743B.555, 743B.601, 743B.602 and 743B.800 and section 2, chapter 24, Oregon Laws 2024,
and section 2, chapter 35, Oregon Laws 2024 , and section 2 of this 2025 Act .
(j) The following provisions of ORS chapter 744:
(A) ORS 744.052 to 744.089, 744.091 and 744.093, relating to the regulation of insurance produc-
ers;
(B) ORS 744.602 to 744.665, relating to the regulation of insurance consultants; and
(C) ORS 744.700 to 744.740, relating to the regulation of third party administrators.
(k) ORS 746.005 to 746.140, 746.160, 746.220 to 746.370, 746.600, 746.605, 746.607, 746.608, 746.610,
746.615, 746.625, 746.635, 746.650, 746.655, 746.660, 746.668, 746.670, 746.675, 746.680 and 746.690.
(2) The following provisions of the Insurance Code apply to health care service contractors ex-
cept in the case of group practice health maintenance organizations that are federally qualified
pursuant to Title XIII of the Public Health Service Act:
(a) ORS 731.485, if the group practice health maintenance organization wholly owns and oper-
ates an in-house drug outlet.
(b) ORS 743A.024, unless the patient is referred by a physician, physician associate or nurse
practitioner associated with a group practice health maintenance organization.
(3) For the purposes of this section, health care service contractors are insurers.
(4) Any for-profit health care service contractor organized under the laws of any other state that
is not governed by the insurance laws of the other state is subject to all requirements of ORS
chapter 732.
(5)(a) A health care service contractor is a domestic insurance company for the purpose of de-
termining whether the health care service contractor is a debtor, as defined in 11 U.S.C. 109.
(b) A health care service contractor’s classification as a domestic insurance company under
paragraph (a) of this subsection does not subject the health care service contractor to ORS 734.510
to 734.710.
(6) The Director of the Department of Consumer and Business Services may, after notice and
hearing, adopt reasonable rules not inconsistent with this section and ORS 750.003, 750.005, 750.025
and 750.045 that are necessary for the proper administration of these provisions.
SECTION 6.
ORS 750.055, as amended by section 21, chapter 771, Oregon Laws 2013, section
7, chapter 25, Oregon Laws 2014, section 82, chapter 45, Oregon Laws 2014, section 9, chapter 59,
Oregon Laws 2015, section 7, chapter 100, Oregon Laws 2015, section 7, chapter 224, Oregon Laws
Enrolled Senate Bill 598 (SB 598-B) Page 5
2015, section 11, chapter 362, Oregon Laws 2015, section 10, chapter 470, Oregon Laws 2015, section
30, chapter 515, Oregon Laws 2015, section 10, chapter 206, Oregon Laws 2017, section 6, chapter
417, Oregon Laws 2017, section 22, chapter 479, Oregon Laws 2017, section 10, chapter 7, Oregon
Laws 2018, section 69, chapter 13, Oregon Laws 2019, section 38, chapter 151, Oregon Laws 2019,
section 5, chapter 441, Oregon Laws 2019, section 85, chapter 97, Oregon Laws 2021, section 12,
chapter 37, Oregon Laws 2022, section 5, chapter 111, Oregon Laws 2023, section 2, chapter 152,
Oregon Laws 2023, section 4, chapter 24, Oregon Laws 2024, section 5, chapter 35, Oregon Laws
2024, section 22, chapter 70, Oregon Laws 2024, and section 163, chapter 73, Oregon Laws 2024, is
amended to read:
750.055. (1) The following provisions apply to health care service contractors to the extent not
inconsistent with the express provisions of ORS 750.005 to 750.095:
(a) ORS 705.137, 705.138 and 705.139.
(b) ORS 731.004 to 731.150, 731.162, 731.216 to 731.362, 731.382, 731.385, 731.386, 731.390, 731.398
to 731.430, 731.428, 731.450, 731.454, 731.485, as provided in subsection (2) of this section, ORS
731.488, 731.504, 731.508, 731.509, 731.510, 731.511, 731.512, 731.574 to 731.620, 731.640 to 731.652,
731.730, 731.731, 731.735, 731.737, 731.750, 731.752, 731.804, 731.808 and 731.844 to 731.992.
(c) ORS 732.215, 732.220, 732.230, 732.245, 732.250, 732.320, 732.325 and 732.517 to 732.596, not
including ORS 732.582, and ORS 732.650 to 732.689.
(d) ORS 733.010 to 733.050, 733.080, 733.140 to 733.170, 733.210, 733.510 to 733.680 and 733.695
to 733.780.
(e) ORS 734.014 to 734.440.
(f) ORS 742.001 to 742.009, 742.013, 742.016, 742.061, 742.065, 742.150 to 742.162 and 742.518 to
742.542.
(g) ORS 743.004, 743.005, 743.007, 743.008, 743.010, 743.018, 743.020, 743.022, 743.023, 743.025,
743.028, 743.029, 743.038, 743.040, 743.044, 743.050, 743.100 to 743.109, 743.402, 743.405, 743.406,
743.417, 743.472, 743.492, 743.495, 743.498, 743.522, 743.523, 743.524, 743.526, 743.535, 743.550, 743.650
to 743.656, 743.680 to 743.689, 743.788 and 743.790.
(h) ORS 743A.010, 743A.012, 743A.014, 743A.020, 743A.034, 743A.036, 743A.040, 743A.044,
743A.048, 743A.051, 743A.052, 743A.058, 743A.060, 743A.062, 743A.063, 743A.064, 743A.065, 743A.066,
743A.068, 743A.070, 743A.080, 743A.082, 743A.084, 743A.088, 743A.090, 743A.100, 743A.104, 743A.105,
743A.108, 743A.110, 743A.124, 743A.140, 743A.141, 743A.148, 743A.150, 743A.160, 743A.168, 743A.169,
743A.170, 743A.175, 743A.185, 743A.188, 743A.190, 743A.192, 743A.250, 743A.252, 743A.260, 743A.310
and 743A.315 and section 2, chapter 70, Oregon Laws 2024.
(i) ORS 743B.001, 743B.003 to 743B.127, 743B.128, 743B.130, 743B.195, 743B.197, 743B.200,
743B.202, 743B.204, 743B.220, 743B.221, 743B.222, 743B.225, 743B.227, 743B.250, 743B.252, 743B.253,
743B.254, 743B.255, 743B.256, 743B.257, 743B.258, 743B.280 to 743B.285, 743B.287, 743B.300, 743B.310,
743B.320, 743B.323, 743B.330, 743B.340, 743B.341, 743B.342, 743B.343 to 743B.347, 743B.400, 743B.403,
743B.407, 743B.420, 743B.423, 743B.450, 743B.451, 743B.452, 743B.453, 743B.470, 743B.475, 743B.505,
743B.550, 743B.555, 743B.601, 743B.602 and 743B.800 and section 2, chapter 24, Oregon Laws 2024,
and section 2, chapter 35, Oregon Laws 2024 , and section 2 of this 2025 Act .
(j) The following provisions of ORS chapter 744:
(A) ORS 744.052 to 744.089, 744.091 and 744.093, relating to the regulation of insurance produc-
ers;
(B) ORS 744.602 to 744.665, relating to the regulation of insurance consultants; and
(C) ORS 744.700 to 744.740, relating to the regulation of third party administrators.
(k) ORS 746.005 to 746.140, 746.160, 746.220 to 746.370, 746.600, 746.605, 746.607, 746.608, 746.610,
746.615, 746.625, 746.635, 746.650, 746.655, 746.660, 746.668, 746.670, 746.675, 746.680 and 746.690.
(2) The following provisions of the Insurance Code apply to health care service contractors ex-
cept in the case of group practice health maintenance organizations that are federally qualified
pursuant to Title XIII of the Public Health Service Act:
(a) ORS 731.485, if the group practice health maintenance organization wholly owns and oper-
ates an in-house drug outlet.
Enrolled Senate Bill 598 (SB 598-B) Page 6
(b) ORS 743A.024, unless the patient is referred by a physician, physician associate or nurse
practitioner associated with a group practice health maintenance organization.
(3) For the purposes of this section, health care service contractors are insurers.
(4) Any for-profit health care service contractor organized under the laws of any other state that
is not governed by the insurance laws of the other state is subject to all requirements of ORS
chapter 732.
(5)(a) A health care service contractor is a domestic insurance company for the purpose of de-
termining whether the health care service contractor is a debtor, as defined in 11 U.S.C. 109.
(b) A health care service contractor’s classification as a domestic insurance company under
paragraph (a) of this subsection does not subject the health care service contractor to ORS 734.510
to 734.710.
(6) The Director of the Department of Consumer and Business Services may, after notice and
hearing, adopt reasonable rules not inconsistent with this section and ORS 750.003, 750.005, 750.025
and 750.045 that are necessary for the proper administration of these provisions.
SECTION 7.
ORS 750.333, as amended by section 5, chapter 24, Oregon Laws 2024, and section
23, chapter 70, Oregon Laws 2024, is amended to read:
750.333. (1) The following provisions apply to trusts carrying out a multiple employer welfare
arrangement:
(a) ORS 705.137, 705.138 and 705.139.
(b) ORS 731.004 to 731.150, 731.162, 731.216 to 731.268, 731.296 to 731.316, 731.324, 731.328,
731.378, 731.386, 731.390, 731.398, 731.406, 731.410, 731.414, 731.418 to 731.434, 731.454, 731.484,
731.486, 731.488, 731.512, 731.574 to 731.620, 731.640 to 731.652, 731.804, 731.808 and 731.844 to
731.992.
(c) ORS 733.010 to 733.050, 733.140 to 733.170, 733.210, 733.510 to 733.680 and 733.695 to 733.780.
(d) ORS 734.014 to 734.440.
(e) ORS 742.001 to 742.009, 742.013, 742.016, 742.061 and 742.065.
(f) ORS 743.004, 743.005, 743.007, 743.008, 743.010, 743.018, 743.020, 743.023, 743.028, 743.029,
743.053, 743.405, 743.406, 743.524, 743.526, 743.535 and 743B.221.
(g) ORS 743A.010, 743A.012, 743A.014, 743A.020, 743A.024, 743A.034, 743A.036, 743A.040,
743A.048, 743A.051, 743A.052, 743A.058, 743A.060, 743A.062, 743A.063, 743A.064, 743A.065, 743A.066,
743A.068, 743A.070, 743A.080, 743A.082, 743A.084, 743A.088, 743A.090, 743A.100, 743A.104, 743A.105,
743A.108, 743A.110, 743A.124, 743A.140, 743A.141, 743A.148, 743A.150, 743A.160, 743A.168, 743A.169,
743A.170, 743A.175, 743A.180, 743A.185, 743A.188, 743A.190, 743A.192, 743A.250, 743A.252, 743A.260
and 743A.310 and section 2, chapter 70, Oregon Laws 2024.
(h) ORS 743B.001, 743B.003 to 743B.127 (except 743B.125 to 743B.127), 743B.195, 743B.197,
743B.200, 743B.202, 743B.204, 743B.220, 743B.222, 743B.225, 743B.227, 743B.250, 743B.252, 743B.253,
743B.254, 743B.255, 743B.256, 743B.257, 743B.258, 743B.310, 743B.320, 743B.321, 743B.330, 743B.340,
743B.341, 743B.342, 743B.343, 743B.344, 743B.345, 743B.347, 743B.400, 743B.403, 743B.407, 743B.420,
743B.423, 743B.451, 743B.453, 743B.470, 743B.505, 743B.550, 743B.555 and 743B.601 and section 2,
chapter 24, Oregon Laws 2024 , and section 2 of this 2025 Act .
(i) The following provisions of ORS chapter 744:
(A) ORS 744.052 to 744.089, 744.091 and 744.093, relating to the regulation of insurance produc-
ers;
(B) ORS 744.602 to 744.665, relating to the regulation of insurance consultants; and
(C) ORS 744.700 to 744.740, relating to the regulation of third party administrators.
(j) ORS 746.005 to 746.140, 746.160 and 746.220 to 746.370.
(2) For the purposes of this section:
(a) A trust carrying out a multiple employer welfare arrangement is an insurer.
(b) References to certificates of authority are references to certificates of multiple employer
welfare arrangement.
(c) Contributions are premiums.
Enrolled Senate Bill 598 (SB 598-B) Page 7
(3) The provision of health benefits under ORS 750.301 to 750.341 is the transaction of health
insurance.
(4) The Department of Consumer and Business Services may adopt rules that are necessary to
implement the provisions of ORS 750.301 to 750.341.
SECTION 8. Notwithstanding any other law limiting expenditures, the limit on expendi-
tures established in section 7, chapter___, Oregon Laws 2025 (Enrolled House Bill 5025), for
the biennium beginning July 1, 2025, as the maximum limit for payment of expenses by the
Public Employees’ Benefit Board from the Public Employees’ Revolving Fund for benefit plan
premiums and self-insurance is increased by $541,508 for equitable nonopioid prescription
drug coverage.
SECTION 9. Notwithstanding any other law limiting expenditures, the limit on expendi-
tures established in section 8, chapter___, Oregon Laws 2025 (Enrolled House Bill 5025), for
the biennium beginning July 1, 2025, as the maximum limit for payment of expenses by the
Oregon Educators Benefit Board from the Oregon Educators Revolving Fund for benefit plan
premiums and self-insurance is increased by $258,652 for equitable nonopioid prescription
drug coverage.
SECTION 10. Section 2 of this 2025 Act and the amendments to ORS 750.055 and 750.033
by sections 5 to 7 of this 2025 Act apply to health benefit plans, health care service contracts
and multiple employer welfare arrangements issued, renewed or extended on or after the
effective date of this 2025 Act.
Passed by Senate June 23, 2025
..................................................................................
Obadiah Rutledge, Secretary of Senate
..................................................................................
Rob Wagner, President of Senate
Passed by House June 26, 2025
..................................................................................
Julie Fahey, Speaker of House
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled Senate Bill 598 (SB 598-B) Page 8