OSMA Files Injunction Against Medicaid Managed Care

The Oklahoma State Medical Association (OSMA), along with several partners including the Oklahoma Dental Association, Oklahoma Osteopathic Association, Oklahoma Society of Anesthesiologists and the Oklahoma Chapter of the Academy of Pediatrics, has filed a motion asking the Oklahoma Supreme Court to issue an injunction against Medicaid managed care contracts moving forward. This move was supported by a unanimous vote of the OSMA Board of Directors.

On January 26, the Oklahoma Health Authority (OHCA) Board voted to proceed with the managed care RFP process despite numerous questions about their legal authority and the lack of legislative approval. Days later and before the legislative session began, OHCA announced the selection of four companies to be awarded the Medicaid contracts. OSMA is strongly opposed to the implementation of a third-party capitated Medicaid Managed Care program. As shown in states which have implemented such programs, private sector administrative entities lean toward implementing cuts in reimbursement rates in order to maintain profit margins. While OSMA has a strong and long-standing opposition to outsourcing Medicaid to private vendors, this injunction request is solely about the process and the need to be good stewards of state dollars.

The issue has been raised that the Stitt administration circumvented their Constitutional authority by spending state dollars on a Medicaid managed care program not authorized by the state legislature. As established by the Oklahoma Constitution, the legislative branch of government has the sole authority to develop state policy and appropriate state dollars. As stated, the Governor and Secretary of Health Kevin Corbett, OHCA CEO made it clear their intention was to sign MCO contracts before the legislature began session, apparently in order to avoid legislative intervention. The legislature has the opportunity to end this effort to implement a Medicaid managed care scheme by not appropriating funds to cover costs associated with an MCO.

WE NEED YOUR VOICE! PLEASE RESPOND TO THE OSMA ACTION CALL and contact your legislator TODAY and share your opposition to the Administration’s efforts to circumvent Constitutional legislative authority and implement Medical Managed Care without legislative oversight.

The petition and supporting documents can be found here on the OCSN website.