Public Policy Watch
Children’s DD Services II-School Services
The recently proposed Medicaid rules for Children’s Developmental Disability (DD) services will apparently have very serious consequences for schools and students who have been receiving developmental therapy through their school districts. My understanding from the Department of Health and Welfare is that Medicaid will no longer allow schools to bill Medicaid for developmental therapy or the new “intervention” service, if the rules are adopted.
When Schools bill Idaho Medicaid for developmental therapy, the school district pays the state’s share of the costs (typically about 30%, though it has been higher for the last two years because of federal stimulus money). The federal share of the cost is about 70%, which is of course, a significant benefit for the schools. The rule change will shut off this federal funding stream without any benefit to the schools or to the state Medicaid costs. I do not believe that Medicaid payment for physical, occupational or speech therapy in schools will be affected. Schools in their current financial situation will not be enthusiastic about stepping up and using their own funds to provide these services. This will likely lead to conflicts with parents, increased administrative hearings and reduced services for children in special education. I do not believe that schools are fully aware of the impact this change will have on their programs and on their staffing levels. I will acknowledge that school based Medicaid services have not always been used in a way that is most beneficial to the children. However, this unplanned (on the part of schools) loss of federal funds will surely do more harm than good, and as usual children with disabilities will suffer the consequences.
When Schools bill Idaho Medicaid for developmental therapy, the school district pays the state’s share of the costs (typically about 30%, though it has been higher for the last two years because of federal stimulus money). The federal share of the cost is about 70%, which is of course, a significant benefit for the schools. The rule change will shut off this federal funding stream without any benefit to the schools or to the state Medicaid costs. I do not believe that Medicaid payment for physical, occupational or speech therapy in schools will be affected. Schools in their current financial situation will not be enthusiastic about stepping up and using their own funds to provide these services. This will likely lead to conflicts with parents, increased administrative hearings and reduced services for children in special education. I do not believe that schools are fully aware of the impact this change will have on their programs and on their staffing levels. I will acknowledge that school based Medicaid services have not always been used in a way that is most beneficial to the children. However, this unplanned (on the part of schools) loss of federal funds will surely do more harm than good, and as usual children with disabilities will suffer the consequences.
In your opinion, what is the best way to get the schools, parents, voters etc… to fully understand an issue like this?
Also, is this an issue that is coming up for a vote in Idaho? We (in Iowa) are focusing a lot on the upcoming election as well and how voters with disabilities can educate themselves about issues like this. Do you have any advice?