A plan to help pay for Medicaid in Oklahoma passed off the Senate. Senate Joint Resolution 27, by Senate Majority Floor Leader Kim David, R-Porter, refers to Oklahoma voters a constitutional amendment to allow a larger portion of the Tobacco Settlement Endowment Trust Fund (TSET) annual settlement payments to go towards paying for either the governor’s Medicaid expansion program or Medicaid expansion that may result from the approval of a pending state question. 

On June 30, state voters will decide on a State Question  802, a constitutional amendment would expand Medicaid to include Oklahomans are over 18 but under 65 and whose annual income is at or below 133% of the federal poverty line (which was $17,236 in 2019 for a single adult and $35,535 for a family of four).

This would require the Oklahoma Health Care Authority to try to maximize federal funding for Medicaid expansion in Oklahoma.

 The price tag of Medicaid expansion will be upwards of $164 million regardless of the method of expansion.

Created by voters in 2000, TSET is an endowment trust established with payments from the 1998 Master Settlement Agreement (MSA) between 46 states and the tobacco industry. Funds are invested by a Board of Investors, and only the earnings from those investments are used by the Board to support programs focused on improving the health of Oklahomans. The TSET Fund is constitutionally protected and can only be changed through a vote of the people. 

Oklahoma has more than $1.3 billion in the endowment trust.  SJR 27 would ask the voters to decide whether to use 75% of the annual TSET settlement payments for Medicaid expansion in order to draw down federal matching dollars for the Medicaid program. None of the endowment money would be spent under SJR27.

The state question will go before Oklahoma voters in November.