NSBA's Letter to the Senate: April 30, 2008

April 30, 2008

Member
United States Senate
Washington, D.C. 20515

Re:  Extension of Moratorium on School-Based Medicaid Rule, CMS-2287

Dear Senator:

On behalf of the National School Boards Association (NSBA), which represents the nation’s 95,000 local school board members, I urge the Senate to take immediate action to extend the current moratorium on the school based Medicaid rule (CMS-2287) to eliminate federal Medicaid reimbursements to school districts for needed services provided to poor children with disabilities.

Despite overwhelming objections to this rule from over 1200 education and health groups, the U.S. Department of Health and Human Services (HHS) unwisely finalized a rule on December 28, 2007 to eliminate federal Medicaid reimbursements to school districts for the administrative and transportation services that they provide to low-income students with disabilities. The rule would cut an estimated $3.6 billion over five years in reimbursements to school districts for needed services for poor children with special needs, many for whom school is their primary site for healthcare delivery. NSBA is concerned that this action could result in schools having to lay off nurses and social workers, curtail their referral services, and/or scale back enhancements for school buses.

Fortunately, this rule has not yet gone into effect, thanks to a provision included in the Medicare, Medicaid and SCHIP Extension Act of 2007 (S. 2499), which provided for a six-month moratorium on this rule. However, this moratorium is set to expire on June 30, 2008 unless Congress takes further action.

The House of Representatives voted last week (342-62) to pass the Protecting the Medicaid Safety Net Act of 2008 (H.R. 5613), which would extend the current moratorium on the school-based Medicaid rule, as well as place much-needed moratoria on six other harmful Medicaid regulations until April 2009. The strong bipartisan support for this bill underscores the need to prevent the Administration’s policy from taking effect, and the desire for Congress to legislatively address these issues in a more thoughtful and deliberate way.

We urge the Senate to act expeditiously to pass similar legislation so that health care services for our most vulnerable populations—in particular, poor children with disabilities—are not disrupted. It is imperative that Congress address the issue facing schools before the current moratorium expires on June 30, 2008. If we can be of further assistance, please contact Chrisanne Gayl at 703-838-6763.

Sincerely,

Michael A. Resnick
Associate Executive Director