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12:34 pm
Thu August 5, 2010

Medicare Fraud Case

Oklahoma City, OK – Court ref hears arguments on Medicaid funding bill

OKLAHOMA CITY (AP) An attorney for Oklahoma's Insurance Department says a law to raise money for the Medicaid program is unconstitutional and a lawsuit against it should be considered by the state Supreme Court.

Insurance Commissioner Kim Holland has sued to overturn the law that imposes a 1 percent fee on paid insurance claims.

Attorney Michael Ridgeway told court referee Barbara Swimley on Wednesday that the purpose of the law is to raise money for the government. He says its passage during the last five days of the legislative session and without a three-fourths majority in the House and Senate make it unconstitutional.

Assistant Attorney General Tina Izadi countered that the lawsuit should be filed in district court and that Holland is required to presume it is constitutional.

Swimley will submit a summary to the court, which will decide whether to accept the case.