For Immediate Release: May 25, 2010

Sen. Brogdon Says Tax Increase Unconstitutional

Sen. Randy Brogdon was outraged Monday afternoon when his colleagues in the Senate voted on a measure to create a health carrier fee – a move he says was in direct violation of the Oklahoma Constitution.

“Article 5, Section 33 of the state Constitution says no revenue increase should be passed during the last five days of the session, which would be any time this week. This is basically a $78 million tax increase,” said Brogdon. “The ‘yes’ votes on this bill Monday were in direct violation of the Oklahoma Constitution.”

HB 2437 is now awaiting consideration by the Governor. The measure would establish an access payment of one percent to be paid by health carriers on all claims paid until January 1, 2015. Brogdon pointed out that the cost of that fee increase would ultimately be passed on to the citizens of Oklahoma.

“Proponents of this bill keep arguing that this is a fee increase for insurance companies, but let’s be honest with ourselves. If fees are raised for insurance companies, they’re going to pass those costs on to their customers – the citizens of Oklahoma,” said Brogdon. “I’m so disappointed in my colleagues. Their vote Monday not only violated the Constitution, but they also disregarded the needs of their constituents by approving this fee increase, which will hurt citizens financially who are already over taxed. I hope that Governor Henry recognizes the unconstitutionality of this bill and vetoes it.”

For more information, contact:
Sen. Brogdon: (405) 521-5566