This bill establishes new provisions for the state Medicaid program regarding the coverage of educationally necessary school-based services. It defines key terms such as "Individualized Education Program" (IEP) and "school-based services," clarifying that only services deemed educationally necessary for students to receive a free and appropriate public education (FAPE) can be included in the IEP. The bill specifies that medically necessary services that do not fall under the educationally necessary category, such as various health-related therapies, are the responsibility of parents or guardians and should not be included in the IEP.

Additionally, the bill prohibits the Oklahoma Health Care Authority from broadly defining school-based services beyond the established definitions and restricts coverage to only those services that are educationally necessary. It mandates that school-based services be provided by qualified school providers to students under the age of twenty-one, ensuring that payment for these services is contingent upon appropriate documentation supporting their necessity for educational purposes. The act is set to take effect on July 1, 2025, and includes an emergency clause for immediate implementation upon passage and approval.