Okla. House falls 1 vote short, fails to prevent delay in funding for low-income health care

Okla. House falls 1 vote short on insurance fee

OKLAHOMA CITY — The Oklahoma Legislature considered several options Monday to raise revenue to help close a $1.2 billion hole in the state budget, and fell one vote short in the House in attempting to prevent a delay in funding for the health care needs of low-income residents.

The House voted 67-33 for the emergency clause on a bill that institutes a 1 percent fee on paid health care claims, falling short of the 68 needed to pass it. Supporters say the measure would generate about $78 million annually, which could then be matched three to one with federal money to support health care programs.

Without the emergency clause, the bill will not take effect until 90 days after the Legislature adjourns on Friday. The bill passed the Senate 29-14 on Monday without the emergency clause.

Several Republicans argued that the fee was a tax increase and said considering the measure was a violation of the state constitution, which prohibits the passage of revenue bills in the final five days of the legislative session.

“A ‘yes’ vote on this bill this afternoon is in direct violation of the Oklahoma Constitution,” said state Sen. Randy Brogdon, R-Owasso. “It is an injustice to the citizens of this state.”

The new fee was part of an overall budget agreement reached between the Democratic governor and Republican leaders in the House and Senate.

Because the money is matched three to one with federal funds, officials with the Oklahoma Health Care Authority say the delay will result in a total loss of between $52 million and $78 million.

State Treasurer Scott Meacham, the governor’s point man on budget negotiations with legislative leaders, said the delay in funding won’t affect the Oklahoma Health Care Authority’s general operating budget and that there is currently enough funding to handle Medicaid claims for the estimated 692,000 state residents who receive benefits.

“There’s enough to cover the needs,” Meacham said.

The bill, which the insurance industry opposes, is likely to draw a legal challenge, said Dan Ramsey, president and chief executive of the Independent Insurance Agents of Oklahoma.

“I’d be shocked if there wasn’t (a lawsuit),” Ramsey said. “You’re asking responsible people who are already carrying health insurance, they’re going to be assessed 1 percent on all of their claims to subsidize claims for people who don’t have any health insurance.”

Meanwhile, House and Senate budget panels on Monday approved bills to increase from $10 to $25 the fee charged by the Department of Public Safety for providing copies of a person’s driving record. The higher fee is expected to generate an estimated $11.4 million in revenue.

A second bill to double the fee of several oversize and overweight permits passed a House Committee, but must be reconsidered by a Senate panel after the conference committee report failed to receive enough signatures.

Another bill approved by both committees would send to a vote of the people a proposal to increase from 10 percent to 15 percent the amount of surplus revenue placed into the state’s Constitutional Reserve Fund.

Senate Appropriations Chairman Mike Johnson, R-Kingfisher, said if the higher cap had been in effect, it would have resulted in an extra $300 million in cash reserves to help the state weather the recent economic downturn.