State Supreme Court Schedules Hearing on Lawsuit Against New Medicaid Fee

Associated Press

OKLAHOMA CITY -- The Oklahoma Supreme Court has scheduled a hearing on Insurance Commissioner Kim Holland's lawsuit against a new state Medicaid fee.

The state's highest court will hear oral arguments in the case on Monday.

The law creates a one percent fee on claims paid by private health insurers and companies with self-insured health care plans to support the Medicaid program, which provides health care to low-income and elderly residents.

Supporters say the fee will raise up to $240 million for Medicaid. But Holland's lawsuit says it's unconstitutional because it was passed in May during the last five days of the 2010 legislative session.

Holland also says it failed to receive the required supermajority three-fourths vote of the House and Senate.