Limits May Ease on Medicaid Funds for Schools

May 18, 2009

By Rochelle Davis, Founding Executive Director

It was great to hear that the U.S. Department of Health and
Human Services is recommending the reversal of a rule proposed by the Bush Administration
which would prevent schools from being reimbursed by  Medicaid for medical
services that schools deliver.  (To learn more about this rule, see our blog entry from March 2,
2007.)  It appears that the agency has reversed its position based on
opposition expressed by many organizations, including HSC. 

In their recent statement, the agency indicates that they “may
not have been fully aware of the magnitude of the potential adverse
consequences” on students.  In addition, they acknowledged that data
indicating abuse of Medicaid by schools was old and did not reflect the
administrative changes that have since been put in place.

This is great news for schools that are already struggling financially, and for students with disabilities who need special services — such as speech therapy, physical therapy and transportation — during the school day.

We applaud
Senator Kennedy and his staff for their efforts to prevent this rule from being
implemented. We will keep you posted as the process for rescinding
this rule proceeds.