Possible Changes to School Medicaid Billing for IEP Services

Aug 3, 2023 | Federal Standards

Changes may be coming to how schools bill Medicaid for services provided in students’ IEPs. Currently, schools may access a student’s Medicaid benefits to obtain reimbursement for IEP services provided at school only if the school division first obtains written parental consent and provides written notice to the parents.

  • The one-time consent must specify that the parent understands and agrees that the school division may access the child’s public benefits to pay for the services.
  • The written notification must be provided before accessing the child’s public benefits for the first time, prior to obtaining the one-time parental consent, and annually thereafter.
  • The notice must contain information about rights and protections.

This could soon change.

The U.S. Department of Education, Office of Special Education and Rehabilitative
Services (OSERS) has proposed removing the requirement for school divisions to obtain parental consent prior to accessing public benefits.

Organizations that advocate on behalf of students with disabilities oppose this proposed change. In comments submitted to the U.S. Department of Education, the Council of Parent Attorneys and Advocates (COPAA) raises these concerns:

  • Medicaid billing by schools may limit benefits for services outside of school.
  • Sharing students’ information with Medicaid without consent is not consistent with privacy requirements.

The comment period closed August 1, 2023.