Oklahoma Supreme Court Overturns Fee on Paid Medicaid Claims

The Oklahoma Supreme Court has overturned a state law intended to raise revenue for the state’s Medicaid program.

The ruling posted on the court’s Web site said the measure violates the state Constitution, the Associated Press reported. It came a day after justices heard oral arguments in the case.

State Insurance Commissioner Kim Holland had questioned the constitutionality of HB 2437 and petitioned the court to overturn the law. The measure passed in 2010 by the state Legislature set a 1 percent fee on claims paid by private health insurers and companies with self-insured health care plans.

Insurance department attorney Michael Ridgeway argued that the bill failed to get a required three-fourths vote when it passed the House and Senate late in the legislative session.

In a statement released by the insurance department, Holland praised the Court’s decision. She called it “a victory for all Oklahomans who believe that our Constitution is worth upholding. State Question 640 was passed overwhelmingly in 1992 granting the people the right to vote on tax increases in the absence of a super majority vote by the legislature.

“I appreciate the Court’s expediency in looking into this matter. With this decision, my department accomplished all we set out to achieve – to ensure that we adhere to the Constitution and the laws of our state.”

The Independent Insurance Agents of Oklahoma supported Holland’s efforts and commended the state Supreme Court for its ruling.

“Commissioner Holland was correct in filing this lawsuit to protect Oklahoma policyholders from seeing health insurance premiums increase by an estimated $78 million annually as a result of this legislation and we appreciate her efforts to take this aggressive position,” said IIAO President and CEO Dan Ramsey in an announcement released by the association.

Topics Claims Oklahoma