State Medicaid program; allowing coverage of educationally necessary school-based services; prohibiting certain acts by the Oklahoma Health Care Authority. Effective date. Emergency.

SB 1017 allows Oklahoma's Medicaid program to cover school-based services that are specifically required for students to access classroom instruction under their Individualized Education Program (IEP). It defines these services as "educationally necessary" (like speech therapy tied to learning goals), excluding standalone medical care such as routine checkups or vaccinations. The bill prohibits the Oklahoma Health Care Authority from covering non-educational health services or broadening the definition of school-based services beyond federal special education rules. This policy change directly affects K-12 students with IEPs and their schools, requiring Medicaid payments only for services directly supporting classroom learning.