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. It comes a day after justices heard oral arguments in the case.

State Insurance Commissioner Kim Holland asked the court to overturn the law. It 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.

Phone calls to the Insurance Department and the Attorney General’s office – which argued in support of the law – were not immediately returned.

The Independent Insurance Agents of Oklahoma supported Holland’s efforts. The group commended the 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.