The Oklahoma Supreme Court ruled on Tuesday that Governor Kevin Stitt does not have the legislative authority to privatize the state’s Medicaid Program. In its 5-4 decision, the Court invalidated the contracts with managed care organizations (MCOs).

“Following the passage of SQ 802, the OHCA (Oklahoma Health Care Authority) began implementation of a wholly new capitated managed care program. The provisions of SQ 802 in no way authorize this course of action. The OHCA, through an RFP process and competitive bidding, awarded contracts to MCOs without legislative authorization or required rules in place. In effect, the OHCA moved ahead without the required legislative authorization,” the decision reads in part.

The lawsuit was filed by the Oklahoma State Medical Association and several other health care related organizations against Oklahoma Health Care Authority CEO Kevin Corbett, OHCA and the state of Oklahoma.

“The Supreme Court today agreed that the Managed Care contracts were awarded without legislative input and contrary to the plan approved by the voters through State Question 802,” said Lynn Means, executive director, Oklahoma Dental Association. “Medicaid expansion will provide coverage for more than 200,000 of Oklahoma’s most vulnerable citizens. The managed care plan would’ve jeopardized health care for all Oklahomans by driving out providers of general health care, as well as dentists and specialists across the state. This lawsuit was one part of a physician-led effort to ward off privatization to insurance companies and keep Oklahomans in charge of health care in Oklahoma.”

State Question 802 is the voted approved constitutional amendment which expands Medicaid to the working poor in Oklahoma.

Two of the Supreme Court justices who dissented from the majority’s position cited Senate Bill 131 as the Legislature’s acknowledgement of the managed care model Stitt was trying to implement for the state’s Medicaid program.