Managed Healthcare Northwest, Inc. v. Department of Consumer & Business Services

Petitioners on review are two managed health care organizations (MCOs), Managed Healthcare Northwest, Inc., and Providence Health Plan, Inc. (collectively “Managed Healthcare”). They challenge a Department of Consumer and Business Services (DCBS) administrative rule that prohibits MCOs from using “past practices” as a basis for denying authorization of nonmember primary care physicians (PCPs) to treat subject workers. Managed Healthcare argues only that DCBS exceeded or contravened ORS 656.260 (set out below) in adopting the rule. See ORS 183.400(4)(b) (court shall invalidate rule that…