State Medicaid program; medically necessary; donor human milk-derived products; reimbursement; promulgation of rules; policy or procedure; Oklahoma Health Care Authority; federal approval; effective date.

HB 1577 requires Oklahoma Medicaid to cover medically necessary donor human milk-derived products (like donated breast milk) for infants under 12 months in inpatient or outpatient settings. Coverage applies when a licensed physician, physician assistant, or nurse practitioner certifies it is needed due to low birth weight (under 1,500 grams), prematurity (34 weeks or less gestation), or a specific medical condition. The Oklahoma Health Care Authority must establish quality standards for these products, provide separate reimbursement (not bundled with hospital payments), and develop implementing rules while seeking federal approval. The law takes effect November 1, 2025, directly impacting Medicaid-covered infants and healthcare providers in Oklahoma.