Authority sought for schools to seek additional Medicaid reimbursement

The Health and Human Services Committee heard testimony March 14 on a measure that would allow schools to seek Medicaid reimbursement for a broader array of services delivered to Medicaid-eligible special education students.

LB276, sponsored by Omaha Sen. Jeremy Nordquist, would allow school districts to seek reimbursement for audiology services, counseling, psychological and behavioral services, nursing, nutritional services, personal assistance, transportation, social work and vision services.

Nordquist said many schools already are providing these services to special education students but are not allowed under Nebraska law to seek reimbursement from the federal government. Currently, schools are able to seek Medicaid reimbursement only for physical, occupational and speech therapy, he said.

The bill would maintain $3 million in annual funding to the Early Intervention Act, with reimbursements in excess of that amount remitted to school districts and educational service units proportionally in relation to the amount of federal Medicaid funds received.

John Wurdeman, board member of Educational Service Unit 7 in Columbus and chairperson of the Nebraska Association of School Boards Medicaid Consortium, testified in support of the bill. He said school districts should be allowed to seek any federal funds available.

“It concerns me that we are leaving these federal reimbursement dollars … on the table,” Wurdeman said.

Seamus Kelly of the Nebraska Planning Council on Developmental Disabilities also supported the bill, saying Medicaid reimbursement could serve as an incentive for schools to provide appropriate services early in a child’s education rather than seeking less expensive alternatives.

Kelly said some Nebraska families struggle to obtain costly services such as the extensive nursing care required by his 8-year-old daughter.

“We get great services now,” he said, “but not every family in the state with a child with special needs can make that same claim.”

No one testified in opposition to the bill and the committee took no immediate action on it.