Or. Admin. Code § 409-070-0022

Current through Register Vol. 63, No. 12, December 1, 2024

Section 409-070-0022 - Emergency and Exempt Transactions

(1) Pursuant to ORS 415.501(8)(a), the Authority, for good cause shown, may exempt an otherwise covered transaction from review if the Authority finds that:

(a) There is an emergency situation, including but not limited to a public health emergency, which immediately threatens health care services; and

(b) The transaction is urgently needed to protect the interest of consumers and to preserve the solvency of an entity other than a domestic health insurer.

(2) If a proposed transaction would otherwise be subject to review because it involves a change in control of a domestic health insurer, the Department, in consultation with the Authority, for good cause shown, may exempt the transaction from review if the Department finds that:

(a) There is an emergency situation, including but not limited to a public health emergency, which immediately threatens health care services; and

(b) The transaction is urgently needed to protect the interest of consumers and to preserve the solvency of the domestic health insurer.

(3) An applicant for emergency exemption under paragraph (1) of this rule shall provide the Authority, and an applicant for emergency exemption under paragraph (2) of this rule shall provide the Department, with the following:

(a) A detailed explanation of the grounds for the application, including a complete statement of the facts, circumstances and conditions which justify emergency exemption and the conditions necessitating immediate relief;

(b) A detailed explanation of all the terms, conditions and agreements that comprise the transaction and the manner in which such terms, conditions and agreements will respond to the conditions necessitating expedited consideration of the exemption application;

(c) A detailed explanation of the reasons why the transaction is in the public interest and in the interest of those consumers and markets that are or will be served by the parties following closing of the transaction;

(d) If the application for emergency exemption requires or otherwise is based upon, in whole or in part, a disclaimer of a rebuttable presumption of control, the application shall include a disclaimer of control meeting the requirements of OAR 409-070-0025;

(e) Such additional information, documents and analysis as the Authority or the Department, as applicable, may require in order to evaluate the application and the asserted grounds for emergency exemption;

(f) An undertaking by the parties to make such further filings with, and submit such further information to, the Authority or the Department, as applicable and to cooperate with and assist the Authority or the Department, as applicable, in conducting such further investigations, hearings and examinations, as may be required following the allowance of emergency exemption for the transaction;

(g) Payment of a fee in accordance with OAR 409-070-0030; and

(h) An undertaking by the parties to reimburse the Authority for expenses described in OAR 409-070-0050.

(4) The Authority with respect to an application filed under paragraph (1) of this rule, and the Department with respect to an application filed under paragraph (2) of the rule, shall:

(a) Provide a period for the filing of comments in respect of the application unless the Authority or the Department, as applicable, determines that:

(A) The public interest in providing comments is outweighed by the interest in confidentiality of the applicant for emergency exemption; or

(B) the nature of the emergency situation presented and the urgency of the need for emergency exemption will not allow time for the filing and consideration of comments.

(b) Provide the applicant with ten calendar days' advance notice prior to posting the application for public comment.

(5) The Department shall promptly provide an application filed under paragraph (2) of this rule to the Authority, and such an application shall be deemed to include an express consent to the sharing between the Authority and the Department of such application and all material in connection therewith.

(6) The Authority will publish from time to time a list of other categories or types of transactions that shall be exempt from review under these rules.

(7) An applicant for emergency exemption may contest the Authority's determination as provided in OAR 409-070-0075. Unless otherwise ordered in the course of such proceedings, the time periods for preliminary and comprehensive review of the transaction under OAR 409-070-0055 or OAR 409-070-0060 shall remain applicable, without abatement or reduction, in the event a preliminary or comprehensive review of the transaction is thereafter required.

(8) For emergency transactions that the Authority exempts from review, the Authority will publish the entity names and type of the covered transaction no less than 6 months after the transaction has consummated or closed.

Or. Admin. Code § 409-070-0022

OHP 1-2022, adopt filed 02/22/2022, effective 3/1/2022; OHP 10-2022, amend filed 12/08/2022, effective 12/8/2022

Statutory/Other Authority: ORS 415.501

Statutes/Other Implemented: ORS 415.500 to 415.900