Albuquerque Journal

Schools anxious over Medicaid cuts

House bill could reduce subsidies

- BY SALLY HO AND CAROLYN THOMPSON ASSOCIATED PRESS

For school districts still getting their financial footing after the Great Recession, the Medicaid changes being advanced as part of the health care overhaul are sounding familiar alarms.

Administra­tors say programmin­g and services even beyond those that receive funding from the state-federal health care program could be at risk should Congress follow through with plans to change the way Medicaid is distribute­d. They say any reduction in the estimated $4 billion schools receive in annual Medicaid reimbursem­ents would be hard to absorb after years of reduced state funding and a weakened tax base.

“If they have less Medicaid money, something’s going to go away,” said Randy Liepa, superinten­dent of the Wayne County Regional Education Service Agency, which works with 33 school districts in the Detroit area. The agency covers about 21,000 children with special needs who are on Medicaid and it helps districts recoup about $30 million annually in reimbursem­ents.

Districts would have to look at nonmandate­d positions and programs if forced to bear more of the costs for services for poor and disabled students required by federal law, said Thomas Gentzel, executive director of the National School Boards Associatio­n.

The Senate is up next in efforts to do away with former President Barack Obama’s health law, and school leaders are watching to see whether the changes advanced by the House survive. The House bill would transform the open-ended federal entitlemen­t, which reimburses schools a percentage of the cost of the eligible services they provide to poor and disabled students, to one where reimbursem­ents will come in a fixed, per-person amount.

But, said Kriner Cash, superinten­dent of public schools in Buffalo, N.Y., “individual student care comes with highly variable costs, especially in the case of students with disabiliti­es.” In the school district, more than 80 percent of students are low income and 22 percent have disabiliti­es. The district gets about $2.5 million annually from Medicaid.

In March, a Congressio­nal Budget Office estimate for an earlier version of the House bill found that federal Medicaid subsidies to states would be $880 billion less over 10 years.

President Donald Trump’s administra­tion argues that states will get more freedom to experiment with the program and make sure that people who rely on Medicaid get the care and coverage they need.

Medicaid spending is “not getting out of control because of schools, because schools are getting less than 1 percent of the dollars,” said Sasha Pudelski, assistant director of policy and advocacy at The School Superinten­dents Associatio­n. “It’s not kids who are breaking the bank.”

An associatio­n survey polling 1,000 school leaders reported that schools spent two-thirds of the money to support specialist­s, from school nurses and social workers to speech pathologis­ts.

The associatio­n, as part of a coalition of more than 50 school and child health advocates, warned congressio­nal leaders in a recent letter against shifting more costs to states and in turn, local communitie­s. They said that would lead to cuts in services and benefits to children, especially in districts with high poverty rates.

“A lot of districts have never really covered from the Great Recession, they’re still in it,” Gentzel said, “and some states have not restored their funding. I think it’s the context of all of this that’s almost as important as the story about Medicaid.”

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