Governor moves forward with SoonerCare 2.0 without funding source

Posted on: 3/6/20

Gov. Kevin Stitt will announce today that he has directed the Oklahoma Health Care Authority to submit a State Plan Amendment to the Centers for Medicare & Medicaid Services (CMS) for Medicaid expansion. He is making this move even though there has not been a legislative agreement yet on funding the expansion. There is no doubt the high signature count to put SQ 802 on the ballot, along with advocates calling for an election date, have spurred the governor’s actions.

OHA’s board executive committee met this week with the governor to discuss the difficulties that would be placed on hospitals if the SHOPP (Supplemental Hospital Offset Payment Program) fee is raised to 4% to fund the majority of the first-year costs of Medicaid expansion. He continues to state publicly that he will seek this increase and our negotiations with state lawmakers continue. OHA did receive a commitment from the governor to keep the Oklahoma dollars directed toward care coordination at the Oklahoma Health Care Authority, with a focus on cost efficiency and outcome-based care. This takes commercial managed care off the table.

Patti Davis, OHA president, made this statement yesterday: “We absolutely believe that expansion can be funded without an increase in taxes. We agree that the economic return expansion will create, not only for the entire health care industry, but for Oklahoma’s economy, is significant in the long term. However, we are concerned about raising the hospital provider fee by $134 million on only 65 hospitals to fund the majority of the first-year costs. Ultimately, funding Medicaid expansion must protect Oklahoma rural hospitals that are already cash-strapped. We do not want to put a disproportionate burden on vulnerable rural hospitals.”

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