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Local Aid and Finance Medicaid regulations would cut reimbursements
Regulations recently released for comment by the Centers for Medicare and Medicaid Services would significantly reduce reimbursements to municipalities and school districts for medical services provided to disabled students.
The new regulations could reduce Medicaid reimbursements by up to $45 million per year, according to the state’s Office of Medicaid, and would make balancing city, town and school district budgets more difficult next year.
The proposed rules would tighten the eligibility for reimbursement of administrative activities related to medical services provided to students in special education programs and to related transportation services. The rules governing eligibility for direct medical services would not be changed.
The proposed rules would reduce federal Medicaid outlays by $3.6 billion over five years, including $635 million in fiscal 2009, according to the Centers for Medicare and Medicaid Services. The regulations are intended to take effect beginning in the 2008-09 school year.
The Centers for Medicare and Medicaid Services states that the proposed rules reflect long-standing concerns about improper billing by school districts for administrative costs and transportation services. The new rules would allow eligible administrative expenses only when incurred by state or local Medicaid agency employees, but not by local school district staff.
Transportation expenses for the daily trip to and from school would be excluded, and reimbursements would be provided only for student transportation for medical services.
Local Aid and Finance Medicaid regulations would cut reimbursements
Medicaid regulations would cut reimbursements
Regulations recently released for comment by the Centers for Medicare and Medicaid Services would significantly reduce reimbursements to municipalities and school districts for medical services provided to disabled students.
The new regulations could reduce Medicaid reimbursements by up to $45 million per year, according to the state’s Office of Medicaid, and would make balancing city, town and school district budgets more difficult next year.
The proposed rules would tighten the eligibility for reimbursement of administrative activities related to medical services provided to students in special education programs and to related transportation services. The rules governing eligibility for direct medical services would not be changed.
The proposed rules would reduce federal Medicaid outlays by $3.6 billion over five years, including $635 million in fiscal 2009, according to the Centers for Medicare and Medicaid Services. The regulations are intended to take effect beginning in the 2008-09 school year.
The Centers for Medicare and Medicaid Services states that the proposed rules reflect long-standing concerns about improper billing by school districts for administrative costs and transportation services. The new rules would allow eligible administrative expenses only when incurred by state or local Medicaid agency employees, but not by local school district staff.
Transportation expenses for the daily trip to and from school would be excluded, and reimbursements would be provided only for student transportation for medical services.
Written by MMA Legislative Director John Robertson
