POLICY LETTER: December 20, 2007 to Indiana Department of Education Medicaid Liaison John Hill

Dated December 20, 2007Mr. John D. HillMedicaid LiaisonDivision of Exceptional LearnersIndiana Department of EducationRoom 229, state HouseIndianapolis, Indiana 46204-2798Dear Mr. Hill:This letter addresses the Medicaid question you and other colleagues with the National Alliance for Medicaid in Education, Inc. (NAME) presented to staff from the Office of Special Education and Rehabilitative Services (OSERS) and the Office of Special Education Programs (OSEP) at a July 17, 2007 meeting. At that meeting, you requested clarification regarding the Individuals with Disabilities Education Act (IDEA) Part B regulations in 34 CFR 300.154(a)(1), specifically whether school-based Medicaid billing is optional or a mandate under the IDEA. Section 300.154(a)(1) of the regulations requires that an interagency agreement or other mechanism for interagency coordination between the state educational agency (SEA) and noneducational public agency include identification of, or a method for defining, the financial responsibility of each agency for providing services to ensure a free appropriate public education (FAPE) to children with disabilities. Further, it requires that the financial responsibility of each noneducational public agency, including the state Medicaid agency and other public insurers of children with disabilities, must precede the financial responsibility of the local educational agency (LEA) (or the state agency responsible for developing the child's individualized education program (IEP)).The IDEA, however, does not require that states William KnudsenDeputy Assistant SecretaryOffice of Special Education and Rehabilitative Servicescc: Dr. Robert MarraPage 2 Mr. John D. Hill