State House Republicans, Democrats Differ on States’ Rights Committee

OKLAHOMA CAPITOL – This week House Democrats made a barrage of statements condemning the House States’ Rights Committee created by House Speaker T.W. Shannon.

House Democrats complained that the “Committee entertained as fact internet myths and tinfoil hat fantasies” during a meeting of the Committee last Tuesday.

AG’s Federalism Unit Files Amended Lawsuit against Affordable Care Act

New IRS rule to tax businesses conflicts with health care law

OKLAHOMA CITY – Attorney General Scott Pruitt filed an amended complaint Wednesday in Oklahoma federal court, challenging the implementation of certain provisions of the Affordable Care Act.

“Oklahoma is in a unique position with the only active lawsuit against the Affordable Care Act to hold the federal government accountable in how it implements the law,” Pruitt said. “Now that the Supreme Court has deemed the ACA a tax, and therefore constitutional, the federal government must follow the law and proper procedures, and that is not being done.”

The original lawsuit, filed in January 2011 in the U.S. District Court for the Eastern District of Oklahoma, challenged the health care act’s constitutionality under the Commerce Clause, specifically whether the federal government had the power to mandate individuals to buy health insurance as simply a condition of being a citizen. Oklahoma’s lawsuit was stayed by Judge Ronald White until the U.S. Supreme Court issued a ruling in the Florida case.

In June, the Supreme Court sided with the states, agreeing that the health care law had exceeded its power under the Commerce Clause, but the Court gave authority to implement the individual mandate as a tax under Congress’ Taxing Power.

Following the decision, General Pruitt filed a request with Judge White to lift the stay on the Oklahoma case, so new issues related to implementation of the act could be addressed. The judge granted the request last week, lifting the stay.

With Oklahoma’s lawsuit still at the district level, the state can amend the complaint, which would not be allowed with cases on appeal.

Among the issues raised in the complaint is a new IRS rule that violates the Administrative Procedures Act and conflicts with the ACA. Oklahoma also is asking the Court to recognize that because the Supreme Court deemed the health care act’s individual mandate a tax that it no longer conflicts with Oklahoma’s constitutional provision that no law or rule can “compel any person, employer or health care provider to participate in any health care system.”

For a copy of the original and amended complaints or the state’s motion to lift the stay, go online to www.oag.ok.gov.

Pruitt v. Sebelius-Motion to Lift Stay(Final).pdf

Original Complaint - Healthcare.pdf

Oklahoma Amended Complaint.pdf

U.S. Supreme Court to Hear Health Care Law Arguments Next Week

The U.S. Supreme Court is schedule to begin hearing arguments in the Patient Protection and Affordable Care Act cases on March 26, 27, and 28. 

The Court will not allow the proceedings to be televised, but is planning to provide the public with audio recordings and transcripts of the oral arguments on an expedited basis through the Court’s website.  The Court will post the audio recordings and unofficial transcripts as soon as the digital files are available. Morning session files should be available no later than 2 pm.  The recording and transcript of the March 28 afternoon session should be available no later than 4 p.m.

Links to the recordings will be available through links on the Court’s homepage, www.supremecourt.gov. 

Links to the orders and briefs as well as other pertinent documents are available on the U.S. Supreme Court resource page, http://www.supremecourt.gov/docket/PPAACA.aspx.

The arguments will be presented as follows:

Department of Health and Human Services v. Florida (11-398)
(Anti-Injunction Act)
Monday, March 26, 2012, at 10 a.m. (90 minutes for oral argument)

Department of Health and Human Services v. Florida (11-398)
(Minimum Coverage Provision)
Tuesday, March 27, 2012, at 10 a.m. (2 hours for oral argument)

National Federation of Independent Business v. Sebelius, Secretary of Health and Human Services (11-393)

Florida v. Department of Health and Human Services (11-400)
(Severability)
Wednesday, March 28, 2012, at 10 a.m. (90 minutes for oral argument)

Florida v. Department of Health and Human Services (11-400)
(Medicaid)
Wednesday, March 28, 2012, at 1 p.m. (1 hour for oral argument)

Costello Calls Federal Labor Rules Frontal Attack On The Rural Family

Oklahoma City - In a letter to U.S. Secretary of Labor Hilda Solis, Oklahoma Labor Commissioner Mark Costello voiced opposition to rules the U.S. Department of Labor is proposing to the Fair Labor Standards Act regarding child farm workers. Costello charged that the proposed rules are a “frontal attack on the rural family, farm life, and the family farm or ranch as a small business operation.”

The U.S. Department of Labor proposes that the family farm or ranch, when its legal structure is a partnership or corporation, is not allowed to employ children, 16 years of age or younger, in farm work deemed hazardous. 

Costello asserts under the new rules “young teens are barred from riding on a tractor, herding and branding cattle, and grandparents are barred from having their grandchildren work on the family farm. I would much rather defer to the authority of a parent to manage the safety of their child than a distant bureaucrat.”

Costello asserted, “This proposed regulation is suspect, in particularly, originating from an administration headed by someone who has spoken derisively of rural Americans who ‘cling to guns or religion.’ This absurdity will destroy agricultural jobs, hurt American agricultural competitiveness, and damage the cultural integrity of the rural family. This bureaucratic overreach tangibly demonstrates a lack of private sector agriculture experience and would criminalize traditional family farm life.”

“As Commissioner of Labor, duly elected by the citizens of Oklahoma, I have a lawful obligation to speak out for the economic well-being as well as safety concerns of the citizens of this state,” stated Costello.

Costello urged Secretary of Labor Solis to stand down from enacting “flawed nanny state rules.”

Governor Mary Fallin Joins Other Governors in Releasing Medicaid Reform Principles

Fallin, 28 other GOP Governors Send Letter to Washington

Gov. Mary Fallin

Governor Mary Fallin today joined 28 other GOP governors in announcing seven guiding principles for reforming Medicaid.

The principles will serve as a framework as governors continue working with Congress as it considers how to reform Medicaid.

“Given the flexibility to craft their own solutions, states can meet the health care challenges of their citizens better than a one-size-fits-all plan handed down from Washington,” Fallin said. “These principles will serve as a guide as we work with the federal government to improve the delivery of Medicaid.”

The seven principles are:

1.         States and territories are best able to make decisions about the design of their healthcare systems based on the respective needs, culture and values of each state.

2.         States and territories should also have the opportunity to innovate by using flexible, accountable financing mechanisms that are transparent and that hold states accountable for efficiency and quality healthcare.  Such mechanisms may include a block grant, a capped allotment outside of a waiver, or other accountable and transparent financing approaches.

3.         Medicaid should be focused on quality, value-based and patient-centered programs that work in concert to improve the health of our states’ citizens and drive value over volume, quality over quantity, at the same time containing costs. 

4.         States and territories must be able to streamline and simplify the eligibility process to ensure coverage for those most in need, and states must be able to enforce reasonable cost sharing for those able to pay.

5.         States and territories can provide Medicaid recipients a choice in their healthcare coverage plans, just as many have in the private market, if they are able to leverage the existing insurance marketplace through innovative support mechanisms.   

6.         Territories must be ensured full integration into the federal healthcare system so they can provide healthcare coverage to those in need with the flexibility afforded to the states.

7.         States must have greater flexibility in eligibility, financing and service delivery in order to provide long-term services and support that keep pace with the people Medicaid serves. New federal requirements threaten to stifle state innovation and investment.  In addition, since dual eligibles now constitute 39 percent of Medicaid spending, Medicare policies that shift costs to the states must be reversed and the innovative power of states should be rewarded by a shared-savings program that allows full flexibility to target and deliver services, which are cost-effective for both state and federal taxpayers.


From the letter:

"The first step for a successful Medicaid transformation is the full repeal of the Patient Protection and Affordable Care Act...."

"...we have witnessed over the years as federal funding has expanded, so has federal control."

"...states have been caught in more intensive federal constraints that add little to the value or quality of services being delivered...."

"...states have proven themselves to be the real innovators in health care delivery while the federal government has operated Medicaid in a very prescriptive manner."

"States should not have to seek waivers to manage their unique programs."

"Even prior to the PPACA, Medicaid had become one of the most challenging components of the budget puzzle, consuming between 15 to 25 percent of most state spending."

"This consumption of state resources is crowding out other essential services such as education, public safety and even public health. This is not sustainable."