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Gov. Mary Fallin says Oklahoma will not develop health care exchange under Affordable Care Act

Gov. Mary Fallin announced Oklahoma will not set up a health care exchange under the Affordable Care Act and won't expand Medicaid. States that do not develop an insurance exchange will have one set up for them by the federal government.
BY MEGAN ROLLAND Modified: November 19, 2012 at 9:40 pm •  Published: November 19, 2012

Gov. Mary Fallin rejected a proposal Monday to expand the Medicaid health care program to an estimated 150,000 uninsured individuals in Oklahoma and refused to establish an online marketplace for the uninsured to shop for health insurance.

For more than two years, a group of 28 states, mostly with Republican governors, have fought to prevent the implementation of the Patient Protection and Affordable Care Act, which has come to be known as Obamacare.

First, states challenged the law in federal court, but the Supreme Court upheld most of the law as constitutional in a ruling on a challenge led by Florida.

Now, many states are refusing to participate in two of the mandated programs.

By refusing the expansion of Medicaid, critics say Oklahoma is turning down between $300 million and $500 million in federal money annually to provide health insurance to those in need.

Fallin's refusal to set up a health exchange means the federal government will establish and operate one in Oklahoma.

Fallin said the Medicaid expansion is unaffordable and untenable given the fiscal challenges the federal government faces. She said any health care exchange set up by Oklahoma would be stymied with strict federal guidelines.

“If we tried to do our own state exchange, myself and other governors across the nation believe it's in name only because in the end it would be the Obama administration that would approve it,” Fallin said.

“It does not benefit Oklahoma taxpayers to actively support or fund a new government program that will ultimately be under the control of the federal government, that is opposed by a clear majority of Oklahomans, and that will further the implementation of a law that threatens to erode both the quality of the American health care system and the fiscal stability of the nation.”

Oklahoma voters passed a state question in 2010 that sought to prohibit some portions of the Affordable Care Act from being implemented in Oklahoma. State Question 756 had 64.7 percent approval.

“Oklahomans simply do not want anything to do with Obamacare, and Senate Republicans stand firmly with Governor Fallin in rejecting it,” said Senate President Pro Tem Brian Bingman, R-Sapulpa.

“We want real, conservative solutions to the rising cost of health care. We want to make care more accessible, more affordable and easier to obtain.”

State Senate Minority Leader Sean Burrage, D-Claremore, said the decision came down to politics rather than what is good for Oklahomans.

“We already currently take about $3 billion from the federal government for Medicaid,” Burrage said.

“It provides not just health care for many Oklahomans, but in many cases, it is the financial backbone for our hospitals, particularly our rural hospitals. We had an opportunity here to have compensated care for 115,000 to 200,000 people.”

Fallin sent a letter Monday to the U.S. Secretary of Health Kathleen Sebelius, informing her of Oklahoma's decision.

Legal challenges ahead

Fallin and Attorney General Scott Pruitt said they are now hopeful that Oklahoma's challenge to the Affordable Care Act — which was separate from the Florida challenge struck down by the Supreme Court — will prevail in overturning part of the federal law.

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