Oklahoma Insurance Chief Challenges Medicaid Tax

Oklahoma Insurance Commissioner Kim Holland has asked the Oklahoma Supreme Court to strike down a new state law designed to raise revenue for the state’s Medicaid program. The law imposes a fee on health insurance carriers.

Holland filed a petition asking the high court to declare the statute unconstitutional.

Among other things, Holland says state lawmakers passed the bill during the last five days of the 2010 legislative session in violation of the state Constitution.

Holland also alleges that the measure, House Bill 2437, failed to receive the supermajority three-fourths vote of the House and Senate required by the Constitution .

The measure requires payments by health carriers to fund the state’s Medicaid program. The fee would be collected by the insurance commissioner and would raise an estimated $78 million in new revenue.