News Release

January 19, 2012

OHCA Contacts: Jo Kilgore - (405) 522-7474, Carter Kimble - (405) 522-7510

Federal Government Approves Oklahoma Waiver For Hospital Provider Fee

After months of working out details, Oklahoma was awarded federal approval for its Supplemental Hospital Offset Provider Payment (SHOPP) program. The Oklahoma Health Care Authority (OHCA) has been working toward approval of the hospital provider fee from the Centers for Medicare & Medicaid Services (CMS) to implement the change since the measure passed last legislative session.

House bill 1381 allows for a 2.5 percent fee to be put on certain Oklahoma hospitals. The revenue from the measure is then matched by the federal government and used primarily to maintain hospital reimbursement from the SoonerCare program. OHCA projects it will raise an additional $340 million for hospital payments. The legislation terminates the fee on Dec. 31, 2014.
“The unfortunate reality is at times when our provider community is needed and utilized the most; is often the same time the state is strapped for resources and has to look for new ways to fund its programs,” said Mike Fogarty, CEO of OHCA.

The law was signed by the governor on May 13, 2011, after being passed by the legislature with super majority approval. Forty-six states have some sort of provider fee to leverage federal funding in order to keep reimbursement rates up and Medicaid programs funded.

“When care for SoonerCare patients is fully funded, it makes hospital care more affordable for all Oklahomans. This program also protects existing SoonerCare payment rates for physicians and other SoonerCare providers,” said Craig W. Jones, president of the Oklahoma Hospital Association. “Today’s announcement highlights our governor’s and legislators’ commitment to improving access to care for all Oklahomans.”