1. (1) For purposes of this rule, a provider enrolled with the Health Systems Division (Division) that does not have a contract with a Division-contracted Managed Care Entity (MCE) is referred to as a non-participating provider.
2. (2) For services covered by the CCO or PHP, a non-participating provider, other than a hospital governed by (3) and (4) of this rule, must accept from the Division-contracted MCE, as payment in full, the amount that the provider would be paid from the Division if the client was fee-for-service (FFS).

3. (3) For covered services provided on and after October 1, 2011, the Division-contracted MCE that does not have a contract with a hospital, is required to reimburse, and hospitals are required to accept as payment in full, the following reimbursement:

   1. (a) Non-participating Type A and Type B hospital: The MCE shall reimburse a non-participating Type A and Type B hospital fully for the cost of covered services based on the cost-to-charge ratio used for each hospital in setting the global payments to the MCE for the contract period;
   2. (b) Hospitals (not designated as a rural access or Type A and Type B hospital) including Child/Adolescent Psychiatric units in a hospital: As specified in ORS 414.743, the MCE shall reimburse inpatient and outpatient services using a Medicare payment methodology at a specified percentage point less than the percentage of Medicare costs used by the Oregon Health Authority (Authority) when calculating the base hospital capitation payment to the MCE excluding any supplemental payments;

   3. (c) Effective for services on or after January 1, 2025, inpatient psychiatric adult and pediatric services shall be reimbursed using the DRG and outlier methodology outlined in OAR 410-125-0141 (10) and (11).

      1. (A) Effective for services on or after October 1, 2011, for a hospital providing 10 percent or more of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 64 percent;
      2. (B) Effective for services on or after October 1, 2011, for a hospital providing less than 10 percent of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 66 percent.
      3. (C) Effective for services on or after January 1, 2020 for a hospital providing 10 percent or more of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 76 percent.
      4. (D) Effective for services on or after January 1, 2020 for a hospital providing less than 10 percent of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 78 percent.

      5. (E) Effective for services on or after January 1, 2023 but before January 1, 2024.

         1. (i) For a hospital providing 10 percent or more of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 81 percent; and
         2. (ii) For a hospital providing less than 10 percent of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 83 percent.
         3. (d) For Maternity Services effective on or after January 1, 2026 but before January 1, 2027;
      6. (A) For hospital providing 10 percent or more of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 100 percent; and
      7. (B) For a hospital providing less than 10 percent of the hospital admissions and outpatient hospital services to enrollees of the plan, the percentage of the Medicare reimbursement shall be equal to 102 percent.

4. (4) A non-participating hospital must notify the MCE within two (2) business days of an MCE patient admission when the MCE is the primary payer. Failure to notify does not, in and of itself, result in denial for payment. The CCO or FCHP is required to review the hospital claim for:

   1. (a) Medical appropriateness;
   2. (b) Compliance with emergency admission or prior authorization policies;
   3. (c) Member’s benefit package;
   4. (d) The MCE contract and the Division’s administrative rules.

5. (5) After notification from the non-participating hospital, the MCE may:

   1. (a) Arrange for a transfer to a contracted facility, if the patient is medically stable and the MCE has secured another facility to accept the patient;
   2. (b) Perform concurrent review; and/or
   3. (c) Perform case management activities.
6. (6) In the event of a disagreement between the MCE and hospital, the provider may appeal the decision by asking for an administrative review as specified in OAR 410-120-1580.

Statutory/Other Authority

ORS 413.042

Statutes/Other Implemented

ORS 414.065, 414.025 & 414.743

History

DMAP 22-2026, amend filed 06/05/2026, effective 06/05/2026
DMAP 103-2025, temporary amend filed 12/31/2025, effective 01/01/2026 through 06/29/2026
DMAP 96-2025, temporary amend filed 12/29/2025, effective 01/01/2026 through 06/29/2026
DMAP 90-2025, amend filed 12/17/2025, effective 12/17/2025
DMAP 59-2025, temporary amend filed 07/30/2025, effective 08/01/2025 through 01/27/2026
DMAP 55-2025, amend filed 06/26/2025, effective 06/29/2025
DMAP 150-2024, amend filed 12/29/2024, effective 01/01/2025
DMAP 49-2023, amend filed 06/30/2023, effective 07/01/2023
DMAP 93-2022, amend filed 12/27/2022, effective 01/01/2023
DMAP 77-2022, minor correction filed 09/30/2022, effective 09/30/2022
DMAP 51-2019, amend filed 12/12/2019, effective 01/01/2020
DMAP 49-2012, f. 10-31-12, cert. ef. 11-1-12
DMAP 15-2012, f. & cert. ef. 3-22-12
DMAP 30-2011(Temp), f. & cert. ef. 10-20-11 thru 3-25-12
DMAP 39-2010, f. 12-28-10, cert. ef. 1-1-11
DMAP 4-2010, f. & cert. ef. 3-26-10
DMAP 38-2009, f. 12-15-09, cert. ef. 1-1-10
DMAP 35-2009(Temp), f. & cert. ef. 12-4-09 thru 3-25-10
DMAP 28-2009(Temp), f. 9-11-09, cert. ef. 10-1-09 thru 3-25-10
DMAP 24-2007, f. 12-11-07 cert. ef. 1-1-08
DMAP 2-2007, f. & cert. ef. 4-5-07
OMAP 42-2006(Temp), f. 12-15-06, cert. ef. 1-1-07 thru 6-29-07
OMAP 28-2006, f. 6-22-06, cert. ef. 6-23-06
OMAP 72-2005(Temp), f. 12-29-05, cert. ef. 1-1-06 thru 6-28-06
OMAP 66-2005(Temp), f. 12-13-05, cert. ef. 1-1-06 thru 6-28-06
OMAP 63-2005, f. 11-29-05, cert. ef. 1-1-06
OMAP 49-2005(Temp), f. 9-15-05, cert. ef. 10-1-05 thru 3-15-06
OMAP 35 2005, f. 7-21-05, cert. ef. 7-22-05
OMAP 33-2005, f. 6-21-05, cert. ef. 7-1-05
OMAP 4-2005(Temp), f. & cert. ef. 2-9-05 thru 7-1-05
OMAP 75-2004(Temp), f. 9-30-04, cert. ef. 10-1-04 thru 3-15-05
OMAP 33-2004, f. 5-26-04, cert. ef. 6-1-04
OMAP 23-2004(Temp), f. & cert. ef. 3-23-04 thru 8-15-04
OMAP 22-2004, f. & cert. ef. 3-22-04
OMAP 10-2001, f. 3-30-01, cert. ef. 4-1-01