Directs the office of the insurance commissioner to explore the feasibility of entering into a multistate health insurance pool compact for the purpose of providing affordable health insurance coverage to individuals and small employers. Initially, the multistate health insurance pool compact will include the states of Oregon and California.

Provides that the office of the insurance commissioner shall propose model state legislation that each participating state would enact prior to entering into the multistate health insurance pool compact. If federal legislation is necessary to permit the operation of the multistate health insurance pool, the office of the insurance commissioner shall identify needed changes in federal statutes and rules.

Requires the office of the insurance commissioner to report the findings and recommendations of the feasibility study to the appropriate committees of the senate and house of representatives by December 1, 2007.