Federal officials awarded grants Thursday to groups that will serve as "navigators" to help Oklahomans sign up for health insurance, bringing a warning from state officials that they may risk violating state law by doing so.
The U.S. Health and Human Services Department awarded more than $1.5 million in grants to three groups who will serve as insurance navigators in Oklahoma as part of the Affordable Care Act. The grants are part of $67 million awarded to 105 organizations nationwide.
The three organizations will use the funds to hire navigators, who will help consumers enroll in insurance being offered under the new federal law, also known as "Obamacare." Insurance exchanges - websites where consumers can compare prices and features of health insurance plans - are set to open Oct. 1 as part of the law.
The Tulsa World recently reported that at least four companies have applied to offer insurance through the exchange in Oklahoma. Consumers will be offered plans paying 60 percent to 90 percent of the cost of health care, and people making up to 400 percent of the poverty level may qualify for tax credits.
Grant recipients in Oklahoma were Oklahoma Community Health Centers Inc., $860,866; Little Dixie Community Action Agency Inc., $580,733; and Cardon Healthcare Network, $178,500, according to a Health and Human Services Department news release.
Oklahoma Community Health Centers Inc. is a consortium of nonprofit groups that plans to have navigators in 57 cities and 45 counties in Oklahoma. The group plans to target small businesses and conduct outreach at community events and health fairs, the release states.
Little Dixie Community Action Agency is a consortium of organizations serving 63 counties in the state and will use "existing staff with local ties" for the program, the release states.
Cardon Healthcare Network is a national organization that provides in-person assistance to people enrolling in the Medicaid program in 33 states.
Oklahoma Insurance Commissioner John Doak's office issued an advisory letter Thursday outlining insurance activities that require a license under state law.
"First, HHS wastes money and increases costs for insurers and consumers by duplicating regulation already performed by the Oklahoma Insurance Department," Doak said in a news release. "Now, they continue this wastefulness by spending more on organizations that will be duplicating the work done by Oklahoma's licensed agents and brokers."
The department regulates more than 335,000 licensed agents and brokers. Under state law, only those licensees may sell, solicit and negotiate insurance in Oklahoma, the department said.
In an email Thursday, a federal official said HHS "will work closely with states to ensure navigators are able to perform their required functions consistent with state policy."
Bob Moos, spokesman for the Southwest Regional Office of the Centers for Medicare and Medicaid Services, said the federal law does not allow states to pass licensing requirements that "prevent the application" of the navigator program.
"If a state law might potentially prevent the navigator program from functioning, HHS will assess the specifics of that state law and its implementation and work with the state to address potential conflicts," his email states.
The Affordable Care Act has faced stiff opposition from Republicans in Congress, who have voted 40 times to repeal it, as well as in some states. Oklahoma Attorney General Scott Pruitt has filed a federal suit challenging the law, which is pending.
About 18 percent of Oklahoma's population is uninsured. Gov. Mary Fallin rejected an expansion of Medicaid that would have provided insurance for people with incomes up to 133 percent of the federal poverty level.
As a result, 8,000 people now on a state program known as Insure Oklahoma and anyone making 100 percent or below the federal poverty level will not be eligible for the program. Fallin has said she is working to find a solution to the problem but that it will not be addressed in the upcoming special legislative session.
Ziva Branstetter 918-581-8306
ziva.branstetter@tulsaworld.com
Original Print Headline: Health insurance 'navigators' funded
