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Marion County Judge Denies Oregon Health Authority Motions to Dismiss FamilyCare Health Lawsuit

Portland, Ore. – May 23, 2017 – A Marion County judge has denied the Oregon Health Authority’s (OHA) motions to dismiss the 2017 lawsuit filed by FamilyCare Health against OHA. The judge ruled immediately from the bench, denying OHA’s motions to dismiss FamilyCare’s claims, denying OHA’s motion to strike FamilyCare’s allegations, and allowing FamilyCare to begin the process of acquiring documents. This marks the third time since 2014 that FamilyCare has filed suit against OHA and the third time that the courts have denied OHA’s motions to dismiss.

The decision allows FamilyCare to move ahead with its claims regarding the inequitable and actuarially unsound rate setting process that has resulted in three consecutive years of operating deficits for the Portland-based Coordinated Care Organization.

“We are pleased by the judge’s immediate ruling, which will allow FamilyCare to move forward with discovery and shed light on the non-transparent rate development process that’s given us the lowest rates of any of the CCOs for three straight years,” said FamilyCare Health President and CEO Jeff Heatherington. 

During the discovery process, FamilyCare legal counsel will seek key data, emails, and other documentation from OHA previously denied to FamilyCare.

Heatherington added, “Up to this point, OHA has refused to provide pertinent information necessary to explain the rates, claiming that this data is a trade secret. We have been advocating for transparency and actuarial soundness for each CCO in the state and we now have an opportunity to get to the bottom of these issues.”

The judge scheduled a June 8th hearing to establish a protocol for the exchange of information.

About FamilyCare Health

For more than 30 years, FamilyCare Health provided patient-centered health care to Oregonians. FamilyCare Health was the first health plan in Oregon to integrate models of physical and mental health and the first CCO in the tri‐county area certified by the Oregon Health Authority.

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