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Oklahoma Legislature· SB 202SCs named GCCA

An act relating to the state Medicaid program, the official text

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1                  STATE OF OKLAHOMA

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2                 1st Session of the 60th Legislature (2025)

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3 SENATE BILL 202                 By: Daniels
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6                  AS INTRODUCED

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7   An Act relating to the state Medicaid program;

7   amending 56 O.S. 2021, Section 1010.1, as last

8   amended by Section 2, Chapter 133, O.S.L. 2024 (56

8   O.S. Supp. 2024, Section 1010.1), which relates to

9   premium assistance program; modifying eligibility

9   requirements for self-funded or self-insured health

10  care plan to participate in premium assistance

10  program; conforming language; updating statutory

11  language; updating statutory references; and

11  providing an effective date.

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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15  SECTION 1.     AMENDATORY  56 O.S. 2021, Section 1010.1, as

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16 last amended by Section 2, Chapter 133, O.S.L. 2024 (56 O.S. Supp.
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17 2024, Section 1010.1), is amended to read as follows:
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18  Section 1010.1. A. Section 1010.1 et seq. of this title shall

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19 be known and may be cited as the "Oklahoma Medicaid Program Reform
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20 Act of 2003".
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21  B. Recognizing that many Oklahomans do not have health care

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22 benefits or health care coverage, that many small businesses cannot
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23 afford to provide health care benefits to their employees, and that,
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24 under federal law, barriers exist to providing Medicaid benefits to
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    Req. No. 340                                              Page 1
1 the uninsured, the Legislature hereby establishes provisions to
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2 lower the number of uninsured, assist businesses in their ability to
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3 afford health care benefits and coverage for their employees, and
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4 eliminate barriers to providing health coverage to eligible
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5 enrollees under federal law.
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6   C. Unless otherwise provided by law, the Oklahoma Health Care

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7 Authority shall provide coverage under the state Medicaid program to
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8 children under the age of eighteen (18) years whose family incomes
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9 do not exceed one hundred eighty-five percent (185%) of the federal
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10 poverty level.
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11  D. 1. The Authority is directed to apply for a waiver or

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12 waivers to the Centers for Medicare and Medicaid Services (CMS) that
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13 will accomplish the purposes outlined in subsection B of this
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14 section. The Authority is further directed to negotiate with CMS to
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15 include in the waiver authority provisions to:
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16  a. increase access to health care for Oklahomans,

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17  b. reform the Oklahoma state Medicaid Program program to

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18                promote personal responsibility for health care

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19                services and appropriate utilization of health care

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20                benefits through the use of public-private cost

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21                sharing,

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22  c. enable small employers, and/or employed, uninsured

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23                adults with or without children to purchase employer-

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24                sponsored, state-approved private, or state-sponsored

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    Req. No. 340                                               Page 2
1                 health care coverage through a state premium

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2                 assistance payment plan. If by January 1, 2012, the

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3                 Oklahoma Employer/Employee Partnership for Insurance

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4                 Coverage premium assistance program is not consuming

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5                 more than seventy-five percent (75%) of its dedicated

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6                 source of funding, then the program will be expanded

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7                 to include parents of children eligible for Medicaid,

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8                 and

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9   d. develop flexible health care benefit packages based

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10                upon patient need and cost.

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11  2. The Authority may phase in any waiver or waivers it receives

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12 based upon available funding.
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13  3. The Authority is authorized to develop and implement a

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14 premium assistance plan to assist small businesses and/or their
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15 eligible employees to purchase employer-sponsored insurance or "buy-
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16 in" to a state-sponsored benefit plan.
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17  4. a. The Authority is authorized to seek from the Centers

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18                for Medicare and Medicaid Services any waivers or

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19                amendments to existing waivers necessary to accomplish

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20                an expansion of the premium assistance program to:

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21                (1) include for-profit employers with two hundred

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22                     fifty employees or less up to any level supported

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23                     by existing funding resources, and

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    Req. No. 340                                                Page 3
1                 (2) include not-for-profit employers with five

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2                  hundred employees or less up to any level

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3                  supported by existing funding resources.

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4   b. Foster parents employed by employers with greater than

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5                 two hundred fifty employees shall be exempt from the

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6                 qualifying employer requirement provided for in this

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7                 paragraph and shall be eligible to qualify for the

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8                 premium assistance program provided for in this

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9                 section if supported by existing funding.

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10  E. For purposes of this paragraph, "for-profit employer" shall

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11 mean an entity which is not exempt from taxation pursuant to the
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12 provisions of Section 501(c)(3) of the Internal Revenue Code of
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13 1986, as amended, and "not-for-profit employer" shall mean an entity
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14 which is exempt from taxation pursuant to the provisions of Section
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15 501(c)(3) of the Internal Revenue Code of 1986, as amended.
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16  F. The Authority is authorized to seek from the Centers for

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17 Medicare and Medicaid Services any waivers or amendments to existing
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18 waivers necessary to accomplish an extension of the premium
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19 assistance program to include qualified employees whose family
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20 income does not exceed two hundred fifty percent (250%) of the
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21 federal poverty level, subject to the limit of federal financial
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22 participation.
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    Req. No. 340                                                Page 4
1   G. The Authority is authorized to create as part of the premium

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2 assistance program an option to purchase a high-deductible health
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3 insurance plan that is compatible with a health savings account.
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4   H. 1. There is hereby created in the State Treasury a

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5 revolving fund to be designated the "Health Employee and Economy
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6 Improvement Act (HEEIA) Revolving Fund".
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7   2. The fund shall be a continuing fund, not subject to fiscal

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8 year limitations, and shall consist of:
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9   a. all monies received by the Authority pursuant to this

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10                section and otherwise specified or authorized by law,

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11  b. monies received by the Authority due to federal

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12                financial participation pursuant to Title XIX of the

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13                Social Security Act, and

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14  c. interest attributable to investment of money in the

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15                fund.

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16  3. All monies accruing to the credit of the fund are hereby

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17 appropriated and shall be budgeted and expended by the Authority to
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18 implement a premium assistance plan and to fund the state share for
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19 the Oklahoma state Medicaid Program program on or after July 1,
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20 2020, unless otherwise provided by law.
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21  I. 1. The Authority shall establish a procedure for verifying

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22 an applicant's individual income by utilizing available Oklahoma Tax
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23 Commission records, new hire report data collected by the Oklahoma
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24 Employment Security Commission, and child support payment data
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    Req. No. 340                                           Page 5
1 collected by the Department of Human Services in accordance with
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2 federal and state law.
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3   2. The Oklahoma Tax Commission, Oklahoma Employment Security

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4 Commission, and Department of Human Services shall cooperate in
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5 accordance with federal and state law with the Authority to
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6 establish procedures for the secure electronic transmission of an
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7 applicant's individual income data to the Authority.
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8   3. The Department of Public Safety shall cooperate in

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9 accordance with federal and state law with the Authority to
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10 establish procedures for the secure electronic transmission of an
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11 applicant's individual identification data to the Authority.
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12  J. An employer participating in the premium assistance program

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13 created under this section as of May 1, 2024, may utilize a A self-
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14 funded or self-insured health care plan as a participating health
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15 care plan shall be eligible to participate in the premium assistance
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16 program created under this section if:
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17  1. The self-funded or self-insured health care plan meets at

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18 least one of the following conditions:
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19  a. the plan is utilized by an employer that was

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20                participating in the premium assistance program as of

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21                May 1, 2024, or

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22  b. the plan is owned and operated by an interlocal self-

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23                funded public trust formed under the Oklahoma Statutes

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24                and comprised of local government employers;

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    Req. No. 340                                                Page 6
1   2. The self-funded or self-insured health care plan is:

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2            a. recognized by the Insurance Department under Section

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3                 6012 of Title 36 of the Oklahoma Statutes, if the plan

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4                 meets the conditions of subparagraph a of paragraph 1

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5                 of this subsection, or

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6            b. under the oversight of the Office of the Attorney

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7                 General, if the plan meets the conditions of

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8                 subparagraph b of paragraph 1 of this subsection;

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9   2. 3. The self-funded or self-insured health care plan covers

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10 all essential health benefits as required by the Authority and all
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11 other health benefits required under applicable federal laws;
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12  3. 4. The self-funded or self-insured health care plan

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13 otherwise complies with all applicable federal laws including, but
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14 not limited to, the Employee Retirement Income Security Act of 1974
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15 (ERISA);
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16  4. 5. The self-funded or self-insured health care plan assesses

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17 a monthly premium on members and maintains a rate schedule for
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18 provider employer reimbursement;
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19  5. 6. The self-funded or self-insured health care plan meets

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20 actuarial standards for the premium assistance program as determined
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21 by the Authority and the employer submits an attestation to the
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22 Insurance Department or the Office of the Attorney General, as
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23 applicable, that the self-funded or self-insured health care plan
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24 meets such actuarial standards; and
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    Req. No. 340                                                Page 7
1   6. 7. The Authority receives the necessary federal approval for

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2 self-funded or self-insured health care plans to participate in the
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3 premium assistance program.
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4   SECTION 2. This act shall become effective November 1, 2025.

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6   60-1-340      DC           12/30/2024 3:24:51 PM

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    Req. No. 340                                      Page 8
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