Legislative leaders announce budget deal

Posted on: 5/14/21

The governor and legislative leaders in both the House and Senate announced a budget agreement in principle. The Thursday afternoon announcement provided a broad outline of essential elements of the budget, including funding Medicaid expansion.

While OHA has not seen specific details on how the state intends to pay for Medicaid expansion, we do know it will include an increase in SHOPP per our sources. For the remainder of the calendar year, Medicaid expansion will be paid for through enhanced federal funding at the OHCA. Regarding the use of SHOPP, we expect to see the following:
• Effective Jan. 1, 2022, a .5% increase in SHOPP (3% total)
• Effective Jan. 1, 2023, a 1% increase in SHOPP (3.5% total)
• Effective Jan. 1, 2024, a 1.5% increase in SHOPP (4% total)

Two things of note. First, one Legislature cannot bind the next year’s Legislature, so it is possible this could change in the next legislative session. Second, our SHOPP statute is very specific, so in order to use SHOPP to pay for Medicaid expansion OR managed care, the existing SHOPP law must be amended.

Of great importance to our industry were comments made regarding managed care by both the governor and Senate Pro Temp Greg Treat. When asked if this budget agreement included implementation of his SoonerSelect proposal, the governor said the $8 billion agreement contained $2.4 billion to implement managed care. 

However, Pro Temp Treat said, “There is no part of this budget agreement that is contingent on one method of delivery or another . . . there was agreement that we would pay for the Medicaid expansion the voters passed, fulfill our obligations, policy is not tied into that budget agreement.”

We are still in the fight to protect our industry and are grateful for our members continued advocacy on this issue. (Scott Tohlen)