The U.S. Education Department’s Office of Special Education and Rehabilitative Services (OSERS) has proposed changing certain rules to make it easier for schools to access Medicaid funding for special education services. Medicaid funds can be used to pay for related services and transportation if a child is Medicaid-eligible and needs services as part of his or her IEP.
Currently, more than $1.6 billion a year in Medicaid funding is used to pay for physical, occupational and speech therapy, mental health services, transportation and counseling.
According to the National Alliance on Medicaid in Education, schools could access billions more in Medicaid funding, but fail to do so because of paperwork required to claim it.
Current rules require districts to get parents’ permission each time they submit bills to Medicaid, which could be as often as twice a month.
Other agencies that bill Medicaid do not have to obtain parental permission so frequently. With recent budget cuts, districts report that administrative and postage costs associated with trying to secure parental permission so often are a serious deterrent.
OSERS’ proposal would allow schools to ask parents for permission only once in order to tap Medicaid for services listed in the IEP.
