Oklahoma withdraws block grant proposal following Medicaid expansion vote

The Oklahoma Health Care Authority has withdrawn plans to revamp part of the state’s Medicaid program under a block grant model.

On Aug. 11, agency director Kevin Corbett rescinded the authority's request for a waiver to charge premiums and impose work requirements on some Medicaid recipients.

“The Oklahoma Health Care Authority has withdrawn the state’s application for the Healthy Adult Opportunity demonstration waiver,” said agency spokeswoman Katelynn Burns. “Due to the passage of State Question 802, the waiver application is no longer applicable to the Oklahoma Medicaid program.”

Earlier this year, the Trump administration introduced Healthy Adult Opportunity waivers as a way for states to individually tailor their Medicaid programs. Gov. Kevin Stitt called the Trump administration initiative a "game changer" and centered his SoonerCare 2.0 plan on a Healthy Adult Opportunity waiver.

But SQ 802, which Oklahoma voters narrowly passed in June, prevents state officials from creating restrictions or burdens to limit Medicaid expansion eligibility or enrollment. Charging premiums and imposing work requirements would almost certainly be considered a violation of the state question.

Oklahoma must expand Medicaid by July ,1 2021.