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 educationally necessary school-based services for students with disabilities, directly affecting K-12 public schools and Medicaid-eligible students. The bill defines "educationally necessary" services (like classroom support) separately from medically necessary ones (e.g., physical therapy), requiring these services to be attached to an Individualized Education Program (IEP) rather than included in the IEP itself. It prohibits the Oklahoma Health Care Authority from expanding this definition or covering non-educational health services like eye exams or flu shots. The law takes effect July 1, 2025, and applies to students under 21 receiving a free and appropriate public education.