U.S. Department of Education Withdraws Proposed Rule Change on Parental Consent for Medicaid Billing under IDEA
We previously reported on a proposed rule change under the Individuals with Disabilities Education Act (IDEA) that would have amended regulations regarding parental consent for the use of public benefits, such as Medicaid, for Medicaid-reimbursable services provided under IDEA. However, as of December 23, 2024, the U.S. Department of Education has officially withdrawn this proposed rule change.
Background on the Proposed Rule Change
On May 18, 2023, the Department of Education published a Notice of Proposed Rulemaking (NPRM) in the Federal Register, which sought to amend the regulations under Part B of IDEA. Specifically, the proposed rule would have removed the requirement for public agencies to obtain parental consent before accessing a child’s or parent’s public benefits (such as Medicaid or CHIP) for the first time to provide services listed on a child’s Individualized Education Program (IEP).
The idea behind the proposed rule was to streamline the billing process for Medicaid services under IDEA by removing the initial parental consent requirement. The Department argued that this would reduce administrative burdens for schools and ensure quicker access to necessary services for students with disabilities.
The Withdrawal of the Rule
After careful consideration of over 9,700 public comments received during the public comment period, the Department decided to withdraw the proposed rule change. A significant portion of the comments, including large write-in campaigns from parental rights organizations and disability rights advocates, expressed concerns about the potential negative impact on parental rights and access to Medicaid services outside of school.
Many commenters highlighted instances where students with disabilities were denied access to Medicaid services provided outside of school due to their school district accessing their Medicaid benefits for school-based services. Considering these concerns, the Department chose to focus its efforts on providing technical assistance to help address existing challenges in the school-based Medicaid program rather than continuing with rulemaking.
What Does This Mean for Schools and LEAs?
For LEAs, the withdrawal of this proposed rule means that the status quo remains in effect. Schools and public agencies are still required to obtain written parental consent before accessing Medicaid or other public benefits to pay for IDEA services. This ensures that parents retain control over the use of their child’s benefits for school-related services.
While the proposed rule change has been withdrawn, the Department has emphasized its commitment to improving the implementation of school-based Medicaid. The focus will now be on collaborating with federal agencies, states, and stakeholders to address barriers that may prevent access to Medicaid services outside of school.
Looking Ahead
Although the proposed rule change has been withdrawn, the current process for obtaining parental consent for Medicaid billing under IDEA remains in place. At Paradigm Healthcare Services, we excel in helping LEAs navigate these requirements. Our processes ensure that parental consent is efficiently obtained, student data is protected, and FERPA compliance is maintained.
We make it easy for you to stay compliant with IDEA’s parental consent requirements, providing you with the tools and expertise needed to manage documentation seamlessly. Our team works alongside you to ensure that every step of the process is handled accurately and efficiently, so you can focus on serving your students without worrying about the administrative burdens.
If you have any questions or need assistance with parental consent processes, or want to ensure your Medicaid billing remains compliant and streamlined, don’t hesitate to reach out. We are here to support you every step of the way.
