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October 2007
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October 9, 2007
Medicaid Proposes to End Reimbursements to Schools

The federal Centers for Medicare and Medicaid Services (CMS) in a proposed rule issued September 7, 2007, said it plans to eliminate reimbursement for Medicaid administrative activities conducted by school employees or contractors and for the costs of transporting students with disabilities from home to school and back.  The proposed rule notes that “a wide range of medical services are furnished to students in school settings,” in particular to children who have Individualized Education Plans (IEPs) or Individualized Family Services Plans (IFSPs) under the Individuals with Disabilities Education Act (IDEA). Previous guidance documents have allowed schools “to perform activities that provide support for the Medicaid state plan,” specifically including Medicaid outreach, eligibility intake, information and referral, coordination and monitoring of health services, and interagency coordination.” The proposed rule would supersede the previous guidance and would represent a determination by the Secretary of Health and Human Services that such school-based administrative activities do not meet the requirements of existing legislation relating to “direct medical services” or support of the state Medicaid plan.
The full text of the proposed regulation and opportunities to comment are available at http://origin.www.gaoaccess.gov/fr/.