HHS Rescinds Rule to Eliminate School-based Medicaid Reimbursement

U.S. Department of Health & Human Services Secretary Kathleen Sibelius announced that the Department is reversing the Centers for Medicare and Medicaid Services (CMS) rulemaking that would have virtually eliminated school-based Medicaid reimbursement for transportation and administrative healthcare services for students.

If the CMS Rule 2287 had become effective, the fiscal impact on school districts would have been an estimated $3.6 billion over five years. According to the Department, the rescission reflects concern that the rule could limit the Medicaid administrative outreach activities of schools, and that the overall budgetary impact on schools could potentially impact their ability to offer Medicaid services to students.

NSBA greatly appreciates the years of coordinated advocacy efforts from school districts and state school boards associations to reverse the CMS Rulemaking. Even though the rule was issued in December 2007, its implementation had been delayed numerous times through congressional action because of our joint advocacy efforts. On May 6, 2009, the Department posted a proposal in the Federal Register to rescind CMS Rule 2287. Secretary Sibelius’ announcement confirms the rescission.

“These regulations, if left in place would have potentially adverse consequences for Medicaid beneficiaries, some of our nation’s most vulnerable people,” said Secretary Sebelius. “By rescinding these rules, we can expect that children will continue receiving services through their schools, beneficiaries will be able to access all available case management resources to help them better manage their health care, and outpatient hospital and clinic services can continue to be covered in the most efficient manner.

“The actions we are taking today are necessary to ensure that the states have the flexibility they need to fully serve Medicaid-eligible individuals,” said Secretary Sibelius. View Secretary Sibelius’ announcement.
 
This is great news for school districts and we greatly appreciate your advocacy efforts.