Oral Arguments Heard Today in Oklahoma Medicaid Fee Case

The oral arguments in the case against the new health insurance fee in Oklahoma are being heard today. This is in response to a law that was passed in the closing days of the legislative session to add a 1% fee to all claims paid by private insurers.

In effect, the new fee is actually a tax, especially since the intended purpose of the law is to generate revenue to support the Oklahoma Medicaid program.

Insurance Commissioner Kim Holland is arguing that the law in unconstitutional because it was passed during the final five days of the legislative session and failed to receive the required three-fourths supermajority in the House and Senate. Both of those provisions are clearly stated in the Oklahoma Constitution and were added by a vote of the People through State Question 640 in 1992.

As Oklahomans for Responsible Government says, if the law is upheld "[l]awmakers could simply invent new taxes and call them fees in order to get around the will of the people."

This sounds a lot like what Congress was trying to do with Obamacare (call it a "penalty" instead of a "tax").