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January 17, 2024
Media Contact: Erica Heartquist, erica.j.heartquist@oha.oregon.gov, 503.871.8843
OHA grants CareOregon, SCAN Group’s request for extension on transaction review
Health Care Market Oversight program, Department of Consumer and Business Services, and entities agree to a 60-day extension; public comment period will reopen for input on any additional information the entities provide
Portland, Ore. – At the request of SCAN Group and CareOregon, the Health Care Market Oversight (HCMO) program at the Oregon Health Authority (OHA) has agreed to a 60-day extension on HCMO’s comprehensive review of the transaction to provide the entities with additional time to submit supplemental information.
HCMO now expects to complete its comprehensive review by March 18th.
During the extension, HCMO will accept public comments related to the transaction. To submit a public comment, people can email: hcmo.info@oha.oregon.gov and include the word “CareOregon.” Information, status updates, and non-confidential materials provided by SCAN and CareOregon will continue to be posted to the transaction web page as it is submitted to HCMO.
The Oregon legislature established HCMO via HB2362 in 2021 and the program launched in March 2022. HCMO reviews proposed business deals involving health care entities, such as hospitals, health insurance companies, and provider groups to assess the impact of these deals on healthcare costs and access to high quality care, particularly for communities that experience inequities.
HCMO accepted a notice of material change transaction from SCAN Group and CareOregon in 2023 that describes plans for the companies to combine. SCAN Group is a California-based non-profit company that offers Medicare Advantage plans and health care services, focusing on care for older adults. CareOregon provides benefits to approximately 500,000 members of three coordinated care organizations (CCOs) in Oregon, serving seven counties: Columbia Pacific CCO, Health Share of Oregon, and Jackson Care Connect. Under the proposed transaction, SCAN Group will be renamed HealthRight and become the parent company of CareOregon. CareOregon will contribute $120 million to affiliate with HealthRight.
This transaction is also subject to a DCBS domestic insurer Form A review and OHA's Office of Actuarial and Financial Analytics (OAFA) CCO Form A review. At the request of SCAN Group and CareOregon, the Department of Consumer and Business Services (DCBS) and OAFA have agreed to pause the Form A review until HCMO completes its extended comprehensive review and issues its recommendation to DCBS.
The preliminary review report, along with additional documents related to the transaction, can be located here.
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