OKLAHOMA CITY _ State officials are proposing a fee on hospitals and other medical providers to raise funds to expand a subsidy program for small employers and reduce the number of uninsured Oklahomans.

The state Health Care Task Force heard recommendations Tuesday from various advisory committees on ways to decrease the state's uninsured population of more than 600,000.

Oklahoma ranks 47th among the 50 states in the number of residents who do not have health care insurance, but it could vault to the top of the rankings through a provider fee that will leverage federal funds, said Insurance Commissioner Kim Holland and Mike Fogarty, CEO of the Oklahoma Health Care Authority.

Holland said provider fees could generate enough money, combined with federal funds, for a $1.3 billion "Insure Oklahoma" program. That program was started a few years ago to provide financial help to small businesses that want to provide health insurance for their employees.

The fee would be 2 percent for hospitals to start, expanding to other health care providers in subsequent years.

Increasing the number of Oklahomans eligible for Medicaid coverage also was recommended.

The task force will study the recommendations for possible legislation next year. Reps. Kris Steele of Shawnee and Doug Cox of Grove are co-chairman of the task force.

Holland said the provider fee would generate an estimated 20 percent in extra income for hospitals as more "paying customers" are treated and the number of costly emergency room visits by uninsured people is reduced.

"It is an investment," that will create jobs, she said.

Holland said it is estimated that there is cost shifting of $954 million a year in Oklahoma due to treating people who do not have insurance.

Cox, R-Grove, said the idea of a provider fee and expanding the number of Oklahomans eligible for Medicaid will key topics in the legislative health care coverage debate.

"I think that everything's on the table," he said.

Copyright 2008 The Associated Press.