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Recently, the Oklahoma state legislature attempted to implement a one percent fee on the sale of health insurance plans. The proceeds were supposed to help pay for the state’s Medicare program.
However, the state’s Supreme Court just ruled that such a fee is unconstitutional, agreeing with Insurance Commissioner Kim Holland’s objections. Six out of nine justices decided that since the law was passed during the final week of the legislative session with less than three quarters of the legislature in favor, it could not stand.
The fee was to be charged to employers that offer health insurance coverage to their employees. It was supposed to raise $78 million for the fiscal year beginning July 1st.