Oklahoma Insurance Chief Challenges Medicaid Tax

Staff and Wire Reports

OKLAHOMA CITY -- Insurance Commissioner Kim Holland has asked the Oklahoma Supreme Court to strike down a new law designed to raise revenue for the state's Medicaid program.

Holland filed a petition on Tuesday that asks the high court to declare the statute unconstitutional.

Among other things, Holland says state lawmakers passed the bill during the last five days of the 2010 legislative session in violation of the state Constitution.

Holland also alleges that the measure, House Bill 2437, failed to receive the super majority three-fourths vote of the House and Senate required by the Constitution.

The measure requires payments by health carriers to fund the state's Medicaid program. The fee would be collected by the insurance commissioner and would raise an estimated $78 million in new revenue.

State Senator Tom Adelson responded to the challenge, stating he was disappointed in the Insurance Commissioner.

"The legal challenge by Insurance Commissioner Kim Holland jeopardizes the health of thousands of Oklahomans and the financial condition of dozens of hospitals and nursing homes," Adelson said.

"Given her advocacy this past session in support of a dedicated insurance fee and her efforts these past two years to expand coverage for the uninsured, I am also surprised by her apparent policy reversals," he added.

The Oklahoma Supreme Court has not yet said if it would rule on the matter.