Oklahoma court hears arguments on new Medicaid fee

OKLAHOMA CITY (AP) - An attorney for Insurance Commissioner Kim Holland's office has asked the Oklahoma Supreme Court to strike down a new law designed to raise revenue for the state's Medicaid program. Attorney Michael Ridgeway told the state's high court today that lawmakers didn't follow constitutional guidelines when they passed the bill, including not getting a required three-fourths vote of the House and Senate.

The law sets a 1 percent fee on claims paid by private health insurers and companies with self-insured health care plans to support Medicaid. Oklahoma Health Care Authority lawyers say the new law was meant to increase residents' access to health care services provided by Medicaid. Justices indicated their decision may depend on whether the Medicaid fee fits the legal definition of a tax under state law.