This bill establishes new provisions for the state Medicaid program regarding the coverage of educationally necessary school-based services for eligible students. It defines key terms such as "Individualized Education Program" (IEP) and "school-based services," clarifying that only services deemed educationally necessary for a child to receive a Free and Appropriate Public Education (FAPE) may 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 can only be provided by qualified school providers to students under the age of twenty-one, and payment for these services will be contingent upon appropriate documentation. The act is set to take effect on July 1, 2025, and includes an emergency clause for immediate implementation upon passage and approval.