2023 ODA Legislative Wrap-Up

By: Scott Adkins, ODA Contract Lobbyist

The First Regular Session of the 59th Oklahoma Legislature formally adjourned sine die on Friday, May 26th. The Oklahoma Constitution mandates that the legislature must adjourn before 5:00 pm on the last Friday of May each year. The Oklahoma Senate made it with time to spare as they banged the final gavel at 3:40 pm. The House of Representatives also came in under the wire as the final motion to adjourn was made and approved at 3:05 pm. While they seemed like many more, there were 66 legislative days during the 2023 session. One the most important responsibilities of the legislature each year is to write a budget and appropriate funding to the various state agencies. As we’ve previously noted, Oklahoma’s resistance to a complete COVID-19 economic shutdown, the rapid return of business activity, and a staggering amount of federal stimulus have resulted in huge budget surpluses for the last couple of fiscal years and probably the next fiscal year. Total appropriations from the legislature totaled $12.96 billion. This leaves over $4.2 billion unspent between surplus and carryover funds, plus the state’s Rainy Day Account.

In a sign of the continuing tensions between Governor Kevin Stitt and the House and Senate leadership, the Governor allowed the budget appropriations bills to become law without his signature in anticipation of an almost certain veto override. As was noted in press accounts, and although he released a formal statement outlining his frustrations with the amount of money appropriated by the legislature, his decision stands in contrast to his many vetoes of previous budget bills.

Aside from the budget, the 2023 session will be known for the legislature calling itself into a Concurrent Special Session on May 10th. Both the Senate and the House set a date of June 30 for mandatory adjournment, but it is highly likely the legislature will end the special session before that date. The special session was called in order to complete the appropriations for both the FY-23 and FY-24 budgets, the administration of other budgeted funds, and appropriation of federal funds remaining from the American Rescue Plan Act. Lawmakers are expected back at the Capitol before the end of the month in order to finish any of the aforementioned tasks and possibly take up any veto overrides that may result from governor actions after sine die adjounment. The legislature overturned 19 vetoes during the last week of the regular session.

In 2023, the Oklahoma Dental Association initiated HB 1694, the Dental Insurance Transparency Act. This landmark legislation would put in place requirements that all dental benefit plans doing business in Oklahoma operate at a medical loss ratio at a minimum of 80%. To clarify, at least 80% of a patient’s dental benefit premiums must go to direct patient care. All other expenses, such as marketing, sales, and administration, must be held under 20% of patient premiums. The available data indicates that 25-40% of dental premium dollars are used by insurance companies to cover administrative costs, profits, and executive compensation, instead of being directed to patient care. Medical insurance carriers in Oklahoma are required to spend at least 80-85% of patient premiums on healthcare, whereas there is currently no equivalent standard for dental insurance.

HB 1694 was authored by Rep. Marcus McEntire, R-Duncan, and Sen. John Michael Montgomery, R-Lawton. Our legislation passed out of committee in the House of Representatives and received a unanimous vote on the floor of the full House. Facing significant opposition from Delta Dental, HB 1694 failed in the Senate Insurance Committee by a single vote. But this is only the initial effort in a multiyear commitment by the Oklahoma Dental Association to tackle this issue, provide parity for dental and medical coverage, and ensure that dental premiums are spent on actual dental care for our patients.

As we work over the summer to develop and refine our legislative agenda, be assured that your Oklahoma Dental Association will continue to be laser focused on putting patients first and insurance companies last. Insurance and dental benefit parity and medical and dental loss ratios will be front and center during the next legislative session as we fight to protect our dental offices and provide for the oral healthcare of all Oklahomans.