Services Accountability FAQs

Why are schools billing Medicaid?
The Individuals with Disbilities Education Act (IDEA) allows some Individual Education Program (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 a school corporation may bill Medicaid are: audiological services, evaluation and testing, nursing services, occupational therapy, physical therapy, speech therapy, psychological services and social work services.

How do schools use the money they receive from Medicaid?
Money that school districts receive may be 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 parent 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 cost of services.