July 21, 2006 -- Senate Bill Would Continue Medicaid to Schools for Transportation, Administrative Expenses in Connection with Serving Children with Disabilities

Legislation introduced in the Senate July 20 would continue Medicaid reimbursements to schools for the special costs they incur in transporting children with disabilities to school and for administrative expenses that schools incur in connection with Medicaid-reimbursable services for children with developmental, physical, or mental health needs. Noting that the Bush administration is proposing to deny Medicaid funding to schools for transportation or administration, Senator Ted Kennedy (D-MA) and co-sponsors said their Protecting Children's Health Act "recognizes the importance of schools as a site of delivery of health care." Kennedy noted that the estimated value of Medicaid reimbursements to schools for transportation and administration is expected to be $3.6 billion over the next five years, and he said the decision by the administration to eliminate those payments "follows years of resisting Medicaid reimbursements, without clear guidance on how schools should appropriately seek reimbursement." The Senate bill, S. 3705, and similar legislation expected to be introduced in the House of Representatives can be accessed at http://thomas.loc.gov.