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Oklahoma Legislature· HB 3626Second Reading referred to Rules

An act relating to Medicaid, the official text

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1                   STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3626                 By: Lawson

4

5

6                   AS INTRODUCED

7   An Act relating to Medicaid; amending 56 O.S. 2021,

    Section 4002.8, as last amended by Section 3, Chapter

8   372, O.S.L. 2025 (56 O.S. Supp. 2025, Section

    4002.8), which relates to adverse determinations and

9   procedures; adding to who can review the appeal;

    stating the requirements for a psychologist; amending

10  56 O.S. 2021, Section 4002.12, as last amended by

    Section 7, Chapter 448, O.S.L. 2024 (56 O.S. Supp.

11  2025, Section 4002.12), which relates to minimum

    rates of reimbursement, value-based payment

12  arrangements, and payment methodologies; directing

    the Oklahoma Health Care Authority to establish a

13  reimbursement rate for psychologists upon appeal; and

    providing an effective date.

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15

16

17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

18  SECTION 1.      AMENDATORY  56 O.S. 2021, Section 4002.8, as

19 last amended by Section 3, Chapter 372, O.S.L. 2025 (56 O.S. Supp.

20 2025, Section 4002.8), is amended to read as follows:

21  Section 4002.8. A. A contracted entity shall utilize uniform

22 procedures established by the Authority under subsection B of this

23 section for the review and appeal of any adverse determination by

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    Req. No. 15156                                         Page 1
1 the contracted entity sought by any member or provider adversely

2 affected by such determination.

3   B. The Authority shall develop procedures for members or

4 providers to seek review by the contracted entity of any adverse

5 determination made by the contracted entity.

6   C. A provider shall have six (6) months from the receipt of a

7 claim denial to file an appeal.

8   D. A contracted entity shall ensure that all appeals of adverse

9 determinations made by the contracted entity are reviewed by a

10 licensed physician or, if appropriate for the requested service, a

11 licensed mental health professional. The contracted entity shall

12 not use any automated claim review software or other automated

13 functionality for such appeals.

14  E. The physician or mental health professional who reviews the

15 appeal shall:

16  1. Possess a current and valid unrestricted license in any

17 United States jurisdiction;

18  2. Be of the same or similar specialty as a physician,

19 psychologist, or mental health professional who typically manages

20 the medical condition or disease. This requirement shall be

21 considered met:

22  a. for a physician, if:

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    Req. No. 15156                                                 Page 2
1   (1) the physician maintains board certification for

2                   the same or similar specialty as the medical

3                   condition in question, or

4   (2) the physician's training and experience:

5                   (a) includes treatment of the condition,

6                   (b) includes treatment of complications that may

7                       result from the service or procedure, and

8                   (c) is sufficient for the physician to determine

9                       if the service or procedure is medically

10                      necessary or clinically appropriate, or

11  b. for a psychologist, if:

12  (1) the psychologist is currently licensed in

13                  accordance with the Psychologists Licensing Act

14                  in Title 59 of the Oklahoma Statutes,

15  (2) the psychologist has training and experience in

16                  the testing for and treatment of the condition,

17                  or

18  (3) the psychologist's training and experience is

19                  sufficient to determine if the service is

20                  medically necessary or clinically appropriate, or

21  c. for a other mental health professional professionals,

22  if the mental health professional's training and

23  experience:

24  (1) includes treatment of the condition, and

    Req. No. 15156                                                Page 3
1               (2) is sufficient for the mental health professional

2                   to determine if the service is medically

3                   necessary or clinically appropriate;

4   3. Not have been directly involved in making the adverse

5 determination;

6   4. Not have any financial interest in the outcome of the

7 appeal; and

8   5. Consider all known clinical aspects of the health care

9 service under review including, but not limited to, a review of any

10 medical records pertinent to the active condition that are provided

11 to the contracted entity by the member's provider, or a health care

12 facility, and any pertinent medical literature provided to the

13 contracted entity by the provider.

14  F. Upon receipt of notice from the contracted entity that the

15 adverse determination has been upheld on appeal, the member or

16 provider may request a fair hearing from the Authority. The

17 Authority shall develop procedures for fair hearings in accordance

18 with 42 C.F.R., Part 431.

19  SECTION 2.      AMENDATORY  56 O.S. 2021, Section 4002.12, as

20 last amended by Section 7, Chapter 448, O.S.L. 2024 (56 O.S. Supp.

21 2025, Section 4002.12), is amended to read as follows:

22  Section 4002.12. A. Until July 1, 2027, the Oklahoma Health

23 Care Authority shall establish minimum rates of reimbursement from

24 contracted entities to providers who elect not to enter into value-

    Req. No. 15156                                                 Page 4
1 based payment arrangements under subsection B of this section or

2 other alternative payment agreements for health care items and

3 services furnished by such providers to enrollees of the state

4 Medicaid program. Except as provided by subsection I of this

5 section, until July 1, 2027, such reimbursement rates shall be equal

6 to or greater than:

7   1. For an item or service provided by a participating provider

8 who is in the network of the contracted entity, one hundred percent

9 (100%) of the reimbursement rate for the applicable service in the

10 applicable fee schedule of the Authority; or

11  2. For an item or service provided by a non-participating

12 provider or a provider who is not in the network of the contracted

13 entity, ninety percent (90%) of the reimbursement rate for the

14 applicable service in the applicable fee schedule of the Authority

15 as of January 1, 2021.

16  B. A contracted entity shall offer value-based payment

17 arrangements to all providers in its network capable of entering

18 into value-based payment arrangements. Such arrangements shall be

19 optional for the provider but shall be tied to reimbursement

20 incentives when quality metrics are met. The quality measures used

21 by a contracted entity to determine reimbursement amounts to

22 providers in value-based payment arrangements shall align with the

23 quality measures of the Authority for contracted entities.

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    Req. No. 15156                                                 Page 5
1   C. Notwithstanding any other provision of this section, the

2 Authority shall comply with payment methodologies required by

3 federal law or regulation for specific types of providers,

4 including, but not limited to, Federally Qualified Health Centers,

5 rural health clinics, pharmacies, Indian Health Care Providers, and

6 emergency services.

7   D. A contracted entity shall offer all rural health clinics

8 (RHCs) contracts that reimburse RHCs using the methodology in place

9 for each specific RHC prior to January 1, 2023, including any and

10 all annual rate updates. The contracted entity shall comply with

11 all federal program rules and requirements, and the transformed

12 Medicaid delivery system shall not interfere with the program as

13 designed.

14  E. The Oklahoma Health Care Authority shall establish minimum

15 rates of reimbursement from contracted entities to Certified

16 Community Behavioral Health Clinic (CCBHC) providers who elect

17 alternative payment arrangements equal to the prospective payment

18 system rate under the Medicaid State Plan.

19  F. The Authority shall establish an incentive payment under the

20 Supplemental Hospital Offset Payment Program that is determined by

21 value-based outcomes for providers other than hospitals.

22  G. 1. Psychologist reimbursement shall reflect outcomes.

23 Reimbursement shall not be limited to therapy and shall include, but

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    Req. No. 15156                                                  Page 6
1 not be limited to, patient intake administration, testing, and

2 assessment.

3   2. The Authority shall establish a reimbursement rate for

4 psychologists who are successful upon appeal pursuant to section

5 4002.8 of this title that compensates them for the hours spent by

6 the psychologist on the appeal. Such reimbursement shall take into

7 account the hours spent on the administration of the appeal that

8 would have otherwise been spent on providing services to patients.

9   H. Coverage for Medicaid ground transportation services by

10 licensed Oklahoma emergency medical services shall be reimbursed at

11 no less than the published Medicaid rates as set by the Authority.

12 All currently published Medicaid Healthcare Common Procedure Coding

13 System (HCPCS) codes paid by the Authority shall continue to be paid

14 by the contracted entity. The contracted entity shall comply with

15 all reimbursement policies established by the Authority for the

16 ambulance providers. Contracted entities shall accept the modifiers

17 established by the Centers for Medicare and Medicaid Services

18 currently in use by Medicare at the time of the transport of a

19 member that who is dually eligible for Medicare and Medicaid.

20  I. 1. The rate paid to participating pharmacy providers is

21 independent of subsection A of this section and shall be the same as

22 the fee-for-service rate employed by the Authority for the Medicaid

23 program as stated in the payment methodology in OAC 317:30-5-78,

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    Req. No. 15156                                                  Page 7
1 unless the participating pharmacy provider elects to enter into

2 other alternative payment agreements.

3   2. A pharmacy or pharmacist shall receive direct payment or

4 reimbursement from the Authority or contracted entity when providing

5 a health care service to the Medicaid member at a rate no less than

6 that of other health care providers for providing the same service.

7   J. Notwithstanding any other provision of this section,

8 anesthesia shall continue to be reimbursed equal to or greater than

9 the anesthesia fee schedule established by the Authority as of

10 January 1, 2021. Anesthesia providers may also enter into value-

11 based payment arrangements under this section or alternative payment

12 arrangements for services furnished to Medicaid members.

13  K. The Authority shall specify in the requests for proposals a

14 reasonable time frame in which a contracted entity shall have

15 entered into a certain percentage, as determined by the Authority,

16 of value-based contracts with providers.

17  L. Capitation rates established by the Oklahoma Health Care

18 Authority and paid to contracted entities under capitated contracts

19 shall be updated annually and in accordance with 42 C.F.R., Section

20 438.3. Capitation rates shall be approved as actuarially sound as

21 determined by the Centers for Medicare and Medicaid Services in

22 accordance with 42 C.F.R., Section 438.4 and the following:

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    Req. No. 15156                                                  Page 8
1   1. Actuarial calculations must include utilization and

2 expenditure assumptions consistent with industry and local

3 standards; and

4   2. Capitation rates shall be risk-adjusted and shall include a

5 portion that is at risk for achievement of quality and outcomes

6 measures.

7   M. The Authority may establish a symmetric risk corridor for

8 contracted entities.

9   N. The Authority shall establish a process for annual recovery

10 of funds from, or assessment of penalties on, contracted entities

11 that do not meet the medical loss ratio standards stipulated in

12 Section 4002.5 of this title.

13  O. 1. The Authority shall, through the financial reporting

14 required under subsection G of Section 4002.12b of this title,

15 determine the percentage of health care expenses by each contracted

16 entity on primary care services.

17  2. Not later than the end of the fourth year of the initial

18 contracting period, each contracted entity shall be currently

19 spending not less than eleven percent (11%) of its total health care

20 expenses on primary care services.

21  3. The Authority shall monitor the primary care spending of

22 each contracted entity and require each contracted entity to

23 maintain the level of spending on primary care services stipulated

24 in paragraph 2 of this subsection.

    Req. No. 15156                                                  Page 9
1   SECTION 3. This act shall become effective November 1, 2026.

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3   60-2-15156      TJ  12/18/25

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