Revenue Cycle

Federal government proposes cuts to Medicaid payments to schools

Patient Financial Services Weekly Advisor, September 7, 2007

The federal government issued a proposal August 31 to restrict Medicaid payments to schools by "tightening the Medicaid reimbursement rules"-a plan that would result in an estimated $3.6 billion savings over five years, according to the Associated Press.

Dennis Smith, director for the Center for Medicaid and State Operations, says that currently schools bill Medicaid "for administrative and overhead costs that aren't related to delivering health services to poor people," including costs for transportation of poor children to school, and school construction projects, says an August 31 Associated Press article.

To read the full story, click here.

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