Medicaid; creating exception to certain prohibition on contracts with out-of-state providers. Effective date.

SB 257 modifies Oklahoma's Medicaid program rules to allow reimbursement for out-of-state laboratory and diagnostic services when those specific services aren't available from Oklahoma-licensed providers. This exception applies only to lab analysis or diagnostic processing that cannot be performed by in-state medical providers. The bill does not change general Medicaid contracting rules but updates Section 5060 of state law to clarify this limited exception. The Oklahoma Health Care Authority must seek federal approval for this change, and the law takes effect November 1, 2025. This directly affects Medicaid patients needing unavailable lab services and out-of-state providers offering those specific services.