OAR 409-070-0055: Preliminary 30-Day Review of a Notice of Material Change Transaction

(1) Pursuant to ORS 415.501(5) and after receipt of a complete notice of material change transaction in accordance with OAR 409-070-0030(1)(a) and OAR 409-070-0045(5), the Authority must complete a preliminary review to determine whether the proposed material change transaction meets one or more of the criteria set forth in paragraph (2) of this rule. The Authority must, subject to OAR 409-070-0070, publish the notice of material change transaction. For the duration of the preliminary review period, the Authority must accept and publish public comments pertaining to the material change transaction. (2) At the conclusion of the preliminary review described in paragraph (1) of this rule, the Authority must approve, or approve with conditions as provided in OAR 409-070-0065, a material change transaction, or, in the case of a material change transaction involving a domestic health insurer, recommend to the Department that the transaction be approved, if the Authority determines that the transaction meets one or more of the following criteria: (a) The material change transaction is in the interest of consumers and is urgently necessary to maintain the solvency of an entity involved in the transaction; (b) The material change transaction is unlikely to substantially reduce access to affordable health care in Oregon; (c) The material change transaction is likely to meet the criteria set forth in OAR 409-070-0060; (d) The material change transaction is not likely to substantially alter the delivery of health care in Oregon; or (e) Comprehensive review of the material change transaction is not warranted given the size and effects of the transaction. (3) If after a preliminary review, the Authority does not approve or recommend for approval, as applicable, a material change transaction in accordance with this paragraph (2), the Authority must notify the parties and must thereafter conduct a comprehensive review pursuant to OAR 409-070-0060. (4) Unless extended by agreement among the Authority and the parties to a proposed material change transaction, the Authority must complete the preliminary review described in paragraph (1) within 30 calendar days of the Authority's written confirmation of receipt of a complete notice of material change transaction or on the first business day thereafter if the 30th day is a weekend or state-recognized holiday. The Authority must notify the parties at the conclusion of the preliminary review period the results of the preliminary review. If the Authority fails to complete such preliminary review within 30 calendar days of the Authority's receipt of a complete notice of material change transaction, the proposed material change transaction must be subject to the comprehensive review procedure provided in OAR 409-070-0060.