Oklahoma House challenges Gov. Kevin Stitt by approving rival Medicaid plan

Apr. 21—The Oklahoma House passed legislation that seeks to halt Gov. Kevin Stitt's plan to outsource Medicaid care management to four major insurance companies.

On a vote of 73-17, the House late Tuesday evening approved legislation for the Oklahoma Health Care Authority, which oversees the state's Medicaid program, to better manage health care in-house.

"Let's start with reforming the system we have before tearing it apart," said Republican Rep. Marcus McEntire, the bill's author.

The House's veto-proof support for Senate Bill 131, sends the legislation to the state Senate — where it faces an uncertain path in the chamber because one of Oklahoma's top senators has expressed support for Stitt's plan, dubbed SoonerSelect.

Stitt has said his plan is designed to improve health outcomes, a point McEntire refuted. Across the country, there's no evidence that using privatized managed care improves health outcomes, McEntire said.

Stitt is dedicated to pursuing the privatized managed care plan he has outlined, Health Care Authority CEO Kevin Corbett said recently.

"I think (Stitt) would probably characterize his support as unwavering," Corbett said.

A coalition of 16 organizations, representing thousands of medical professionals and patient advocates, opposes Stitt's $2 billion plan to implement privatized managed care, in which the state would pay private companies to oversee health care for most Medicaid beneficiaries.

The group is lobbying senators to bring SB 131 up for a vote.

Health care professionals don't want for-profit insurance companies acting as middlemen in doctor-patient relationships, said Oklahoma State Medical Association President Mary Clarke

"Treatment decisions must be based on what is best for the patient, not the insurance company's bottom line," she said.

Rep. T.J. Marti, R-Broken Arrow, said the vote on SB 131 was likely to be the most important of his legislative career because it could change the health care landscape for many Oklahomans for years to come.

"This bill will be our legacy," said Marti, who voted in favor.

Critics expressed concerns that the Health Care Authority wouldn't be capable of building an in-house managed care program that could adequately care for roughly one million Medicaid recipients.

Rep. Mark Lepak, R-Claremore, said the difference between SB 131 and Stitt's plan is the difference between standing up a new government program or allowing private sector experts to take charge.

"Think about how many programs we look to and say, 'gosh, I wish we did it as well as government does it,'" he said.

McEntire said his plan, which mirrors Stitt's SoonerCare 2.0 proposal the legislature funded last year, would be cheaper than SoonerSelect.

The Health Care Authority said SB 131 would cost $263 million annually, which McEntire said is less than the annual costs for SoonerSelect.

Oklahoma is poised to expand Medicaid on July 1. Oklahoma's Medicaid program is slated to switch over to SoonerSelect on Oct. 1.

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