State program may max out | Online Insurance Information

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Insure Oklahoma, the state-subsidized health insurance program, will be able to make it into the spring on existing funding sources. But by then, it’s unlikely the program can take on any new enrollees.

The program has proven to be a valuable addition to the health insurance offerings in the state, providing coverage now for about 29,000 Oklahomans who otherwise probably wouldn’t have it. Lawmakers must consider some new options for not only preserving it, but allowing it to grow.

Leaders of the Oklahoma Health Care Authority, which administers the program, feared they would have been forced to cap enrollment by now, but slower growth late this year has kept the enrollment below a 35,000 maximum.

Insure Oklahoma provides subsidized health insurance for qualifying small businesses and individuals. Employers pay 25 percent and employees, 15 percent, and the state subsidizes the rest through a mix of tobacco tax funds and federal matching dollars.

Currently, about 20 insurance providers offer about 400 products to enrollees. Providers have come to support the program because new paying customers typically are brought along with new Insure Oklahoma enrollees.

When it looked like the enrollment cap would have been reached by the end of this year, OHCA’s leaders called for legislative action to identify a new funding source. One idea floated was a small assessment fee on insurance claims. This fee, which could be as small as a half-percent, could be matched with federal funds to create a new permanent funding source.

Ultimately, such a plan could bring down the costs of insured Oklahomans by bringing down the costs of uncompensated care.

But such a plan wouldn’t be popular with everyone, including lawmakers and others who would argue such a new fee amounts to a new tax. If the assessment fee idea won’t fly politically, then other possibilities should be investigated.

Insure Oklahoma is expected to reach its enrollment capacity by April. By that time, all stakeholders should have a better idea of what federal health reform will and won’t provide for Oklahomans. Our hope is Oklahoma’s leaders are prepared to do what’s necessary to make this option available to more Oklahomans.

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