Oklahoma Legislature Adjourns Sine Die
On Thursday, the first regular session of Oklahoma's 58th Legislative Session adjourned. Governor Stitt signed the general appropriations and budget bills sent to his office last week. Lawmakers are expected to reconvene in the fall to work on redistricting.
Managed Care Guardrails Bill Becomes Law
Governor Stitt took no action on SB 131 before midnight Wednesday, so it became law without his signature. The bill imposes restrictions on managed care plans in Oklahoma's Medicaid program. SB 131 does not prohibit the Oklahoma Health Care Authority (OHCA) from contracting with private managed care organizations (MCOs) as an earlier version did. Instead, the bill codifies many of the provisions in contracts between OHCA and managed care companies, providing additional legislative and judicial oversight. The bill would also require OHCA to acquire legislative approval before adding the Aged, Blind, and Disabled (ABD) population or other additional populations to managed care contracts.
Additionally, the bill requires MCOs to "contract to the extent possible and practicable with all essential community providers" including community health centers and encourages value-based contracting while establishing current fee schedules as payment floors.
Governor Stitt released a statement on Thursday, saying:
"I appreciate the Legislature’s recognition that managed care is the best path forward for our state via the authority the Oklahoma Health Care Authority retains.
“However, I have concerns that Senate Bill 131 will likely increase costs and limit our ability to improve health outcomes compared to the original plan I proposed and this bill could also make it more difficult to detect waste, fraud and abuse in our Medicaid system.
“I understand that many legislators are also aware of these issues and I am committed to working together to resolve them as we move forward with managed care in Oklahoma.”
Pharmaceutical Companies Refuse HHS Instructions on 340B Shipments
Despite a flurry of court activity and a looming deadline, none of the six drug manufacturers who are restricting access to 340B drugs at contract pharmacies are signaling any intention to reverse these policies. On May 17, HHS sent letters to all six manufacturers stating that their policies violate the law, that they could be subject to fines, and that they must submit a plan to resume contract pharmacy shipments to HHS by June 1. As of 5/28, none of the drug makers have indicated that they will meet the HHS deadline. Instead, Sanofi, Novo Nordisk, Eli Lilly, and AstraZeneca all challenged the deadlines and enforcement actions in court this week. More information to follow.