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Lawmakers Want Oklahoma Health Care Authority to Use Debt Collectors in More Cases

The Oklahoma House approved a bill Monday that would require the Oklahoma Health Care Authority to hire a third party to collect medical expenses when someone they cover gets hurt or sick because of another person’s negligence.

Opponents said many of those cases are straightforward and the agency handles them. Rep. Andy Fugate said debt collectors take a cut of 20% or more.

"And those fees for debt collection are normally that high because those are difficult cases to follow up on. So, why in the world would we send the easy ones to somebody else so they can make 25 to 30% off of those things?" Fugate said.

Current state law allows but does not require OHCA to use a third party to collect expenses in cases of negligence. Rep. Forrest Bennett said a firm the agency uses in some big-money cases recovered less than $100,000 last year, less than the agency’s three-person staff for the same work did.

"So, I wonder, if we were able to find twice as many people with their qualities, could we bring in twice as much? Perhaps, and I’m all for that," Bennett said. "But I’d love it to be people who work directly for the agency, who are accountable directly to us."

Rep. Terry O’Donnell said Senate Bill 251 aligns with conservative, small-government values.

"When we can outsource jobs and repurpose our existing personnel to more important functions, that’s what I’m for, that’s what this bill does," O'Donnell said.

The measure passed 74–26 and goes back to the Senate to have House amendments approved.

Matt Trotter joined KWGS as a reporter in 2013. Before coming to Public Radio Tulsa, he was the investigative producer at KJRH. His freelance work has appeared in the Los Angeles Times and on MSNBC and CNN.