OKMULGEE — During the Oct. 15 Business, Finance and Justice Committee budget hearing, Committee Chairman Representative Lucian Tiger III and Tribal Administrator Shane Holuby disclosed an alleged $21 million tribal deficit. The discussion occurred during the “other business” portion of the meeting, before the meeting went into executive session.
During the discussion, it was disclosed that the debt is owed to an unnamed insurance company.
Shane Holuby is heard off camera saying, “We are at a 21 million dollar deficit. Y’all know that, right? We owe $21 million dollars.” When Chairman Tiger inquires who the debt is owed to, Holuby then replies, “To our insurance. See, that’s another meeting for another time. That’s why we’re here.”
Further discussion then took place off-camera before the hearing entered executive session.
According to the video and the transcript, it appears the discussion referred to MCN’s employee insurance switch from the Blue Cross Blue Shield of Oklahoma Dental and Vision self-insured plan to the Renaissance Dental and Vision (VSP) fully insured plan.
A self-insured health plan pays for employee health care claims from a dedicated fund. In fully insured plans, an employer pays an insurance provider monthly premiums; when costs arise, the company pays them. While self-insured plans can be customized to meet needs, the employer assumes all risks given changing medical costs and claims.
Mvskoke Media reached out to the Executive Branch, BFJ Committee, MCN Human Resources, and the Health, Education, and Welfare Committee for comment about the debt. At this time, only Muscogee (Creek) Nation Press Secretary Jason Salsman has responded.
The following exchanges document email correspondence between Mvskoke Media and Jason Salsman:
MM: Is the Nation currently $21 million in debt, or is running a $21 million deficit?
JS: No. The Nation’s self-insured health plan experienced a loss due to claims increasing. The cause of the loss was identified and has been remedied.
MM: Who does the Nation owe money to: BCBS, Renaissance, or another entity?
JS: This was an issue with a self-insured health plan, so the only money owed was back to MCN from MCN.
MM: When was the debt accrued?
JS: Late fiscal year 2025
MM: When did tribal administration know about it?
JS: Tribal administration was made aware on July 26, and necessary changes were made to the fiscal year 2027 plan with the broker.
MM: Is the debt the cause of the insurance switch, or has it occurred because of the transition?
JS: Yes. The rising costs of medications and claims facilitated that MCN make a change in the plan, and did not occur because of the transition.
MM: What immediate impact does this debt have on tribal operations?
JS: Zero.
MM: Does the deficit jeopardize current tribal programs, payroll, or citizen services?
JS: No.
MM: What immediate steps are being taken to manage this debt?
JS: The Muscogee Nation has made a reallocation within the fringe rate and worked together with the Department of Health to identify rebates back to the plan to remedy the loss. The Nation has also changed brokers, and is in discussion to implement that pharmacies submit drug acquisition costs plus a dispensing fee, so that the plan is monitoring operating margins on claims submitted.
MM: Is this a crisis for anyone needing immediate medical care?
JS: No.
MM: For clarity and accuracy for our readers, can you clarify a few things? Can you explain what you mean by “reallocation within the fringe rate”? Will this not affect employees’ benefits packages?
JS: No, it will not affect employees’ benefits packages. The fringe rate is the percentage of an employee’s base wages that represents the total employer’s cost of required and optional employee benefits and payroll taxes. MCN’s fringe rate includes FICA (employers portion), unemployment, workers comp, 401k, career development, self-insured health insurance, and vacation/PTO buyback benefits. MCN Administration identified adequate reserve levels in benefit funds to increase the percentage with-in the current rate towards the self-insured health insurance fund.
MM: You said the loss was caused by the rising costs of medications and claims and that one lane of remedy is through monitoring the Nation’s pharmacies. Can you explain, for our readers, what you mean by “implement that pharmacies submit drug acquisition costs plus a dispensing fee, so that the plan is monitoring operating margins on claims submitted.
JS: No, this is not specific to the Nation pharmacies, but with pharmacy claims being the major driver for the increase in cost, it would assist the MCN self-insured plan to monitor cost to charge ratios to determine if a cost plus model would be more advantageous to the plan.
MM: You mentioned that the Nation’s self-insured health plan experienced a loss due to claims increasing. Does this mean the number of claims, or the costs of those claims?
JS: Both. With the increase in claims, the annual cost to the plan increases.
Mvskoke Media will continue to report on this developing situation as more information becomes available. At this time, the budget for fiscal year 2027 has not been finalized by the National Council.
