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Why do you need a statute to quote?  Just call up the state CS office in your area and ask!

How can the ex predict what the co-pays will be?  Does she know how often they will need medical care in the future?

This whole idea is crazy and will come back around to bite him in the you know what.

You wrote: it is addressing cases that go through the state. NOWHERE can I find whether it applies to cases where the parties deal directly with each other.

Doesn't he plan on filing the change with the state?  This is crazy. He's going to pay her this lump sum and in 2 or 3 years she's going to ask the state to make him pay CS..  This lump sum will not be considered CS by the courts. The courts will then award her CS and he will start paying it all over again.

Tell him to use his other head.

I wouldn't do it.  I'm in Oregon and she could always go back later and ask for more CS. Doesn't matter what you agree to now, even if you file it with the court.  Been there, done that!

Besides, a lump sum now is worth more than a dollar in the future, so unless she is willing to take that amount and then subtract from it X amount for immediate payment, it's a really bad deal for him.

So she's tired of haggling over very copay and school expense?  Tough. The court doc covers the copay and school expenses should be covered by the CS he already pays.

Exactly where is it that she is planning on sending the kids to college that it would be free?  You do know in OR that divorced parents can be MADE to pay tuition and support if the kid goes to college, right?

OR is an income share state and both his and her income are taken into account when setting CS. Bet if his income increases she will want an increase in CS, but wouldn't want to receive less if her income went up!!!

So I say again: don't do it  don't do it  don't do it.