Oklahoma Code § 56-1011.2

Title 56. Poor Persons: Program to improve service delivery system - Waivers of
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federal laws - Implementation of phase one of act - Independent
evaluation - Purpose.
A.  The Oklahoma Health Care Authority is authorized to seek
waivers and/or other federal authorizations to create a statewide
program to provide for a more efficient and effective service
delivery system that enhances quality of care and client outcomes in
the Oklahoma Medicaid Program.
B.  The Oklahoma Health Care Authority shall develop and submit
for approval, applications for waivers of applicable federal laws
and regulations as necessary to implement the provisions of the

Oklahoma Medicaid Reform Act of 2006.  Copies of all waivers
submitted to and approved by the United States Centers for Medicare
and Medicaid Services under this section shall be provided to the
Legislature within ten (10) days of their approval.  The Oklahoma
Health Care Authority shall submit a plan containing a recommended
timeline for implementation of any waivers and budgetary projections
of the effect of the Oklahoma Medicaid Reform Act of 2006.  This
implementation plan shall be submitted to the Governor, the Speaker
of the House of Representatives and the President Pro Tempore of the
Senate.
C.  1.  For the purposes of this subsection:
a. “rural” means outside the corporate limits of any
municipal corporation and includes open country,
unincorporated communities, and any municipality
having a population of ten thousand (10,000) or less
according to the latest Federal Decennial Census, and
b. “urban” means any area which is not rural.
2.  By July 1, 2010, phase one of this act shall be implemented
within an area of the state with rural and urban characteristics.
The Oklahoma Health Care Authority shall contract for an independent
evaluation and report findings of this phase of the act to the
Governor and the Legislature.  After an independent evaluation and
report to the Governor and Legislature, if it is determined that the
evaluation establishes improved access to health care, improved
health care outcomes, and improved cost efficiencies, it is the
intent of the Legislature that components of the act be phased in
statewide.
D.  Upon this evaluation and determination of improvement by the
Governor and Legislature, the Oklahoma Health Care Authority shall
negotiate a plan for statewide expansion of the act from the Centers
for Medicare and Medicaid Services.
E.  The Oklahoma Health Care Authority may contract with a pay-
for-performance program provider.  The purpose of the program is to
test a program’s value proposition that offers financial incentives
to both the health care provider and the patient for incorporating
evidence-based medicine guidelines and information therapy
prescriptions in the rendering and utilizing of health care.  This
program may offer the health care provider the flexibility to use
the health care provider’s clinical judgment to adhere to or deviate
from the program’s guidelines and still receive a financial
incentive as long as the health care provider prescribes information
therapy to the patient.  The program shall offer a financial reward
to the patient for responding to the information therapy
prescription by demonstrating the patient’s understanding of the
patient’s health condition, by demonstrating adherence to
recommended care, and by judging the quality of care given to the
patient against these guidelines.  The program shall be offered and

administered through an Internet application.  This demonstration
project shall collect and analyze data over a period of two (2)
years or other reasonable time frame in order to determine its
effectiveness.
F.  The purpose of the Oklahoma Medicaid Reform Act of 2006 is
to:
1.  Stabilize Medicaid expenditures in the act areas compared to
Medicaid expenditures in the test areas for the three (3) years
preceding implementation of the act, while ensuring:
a. consumer education and choice,
b. access to medically necessary services,
c. coordination of preventative, acute, and long-term
care services, and
d. reductions in unnecessary service utilization;
2.  Provide an opportunity to evaluate the progress of statewide
implementation of the Oklahoma Medicaid Reform Act of 2006 as a
replacement for the current Medicaid system; and
3.  Introduce competition as a factor that lowers the cost of
the act.

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