SCHOOLS BILLING MEDICAID

Why are schools billing Medicaid?
The Individuals with Disabilities Education Improvement Act (IDEIA) allows some Individualized Education Programs (IEP) services to be covered by Medicaid.   School districts optimize the use of financial resources by billing Medicaid when possible.

What can schools bill Medicaid for?
School corporations can only bill for medically related services that are outlined in the student’s IEP.   In general, services for which the school corporation may bill Medicaid are: audiologist’s services, evaluation and testing, nursing services, occupational therapy, physical therapy, speech therapy, psychological services, and social work services.

How do schools use the money received from Medicaid?
Money that school districts receive is applied to that system’s general fund and can be used as that local school corporation determines.

Do schools need parental consent to bill Medicaid?
Yes.   Schools are required by the Family Educational Rights and Privacy Act (FERPA) to obtain parental consent before disclosing information about a student with a disability.   This includes providing information to Medicaid.   The school needs parental consent to help offset the costs of services.

Will my school bill my private insurance as well?
Because there could be a cost incurred by the family, schools do not bill private insurance for IEP related services.

If schools bill Medicaid, will Medicaid services that I receive outside of school be affected?
No.   Medicaid services received outside of school and the child’s IEP are authorized separately.If outside services have been affected, families are encouraged to share concerns or perceived errors with the Department of Education Medicaid Liaison   (317-232-0570).

Does this process impact the school services my child will receive?
No.   Schools are required to provide all IEP services even if the school cannot bill Medicaid.