MA Billing

Why do school districts bill MHCP for health-related IEP services? 
Not only does it generate funding for Special Education students; it’s the law!

Minnesota State Statutes 125A.21, subd. 2(a) 
“Beginning July 1, 2000, districts shall seek reimbursement from insurers and similar third parties for the cost of services provided by the districts whenever the services provided by the district are otherwise covered by the child’s health coverage.”
Federal Law 34 CFR 300.154 (d)
“Children with disabilities who are covered by public benefits or insurance. (1) A public agency may use the Medicaid or other public benefits or insurance programs in which a child participates to provide or pay for services required under this part, as permitted under the public benefits or insurance program, except as provided in paragraph (d)(2) of this section.”

Minnesota Health Care Programs (MHCP) & Individualized Education Program (IEP) or Individualized Family Service Plan (IFSP)

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Parent Consent on MHCP Applications
DHS refers questions about parental or guardian consent to the Minnesota Department of Education (MDE), the state education authority on education law. Issues deal with the Family Educational Rights and Privacy Act (FERPA) and the Individuals with Disabilities Education Act (IDEA). Review MDE’s Medicaid in Education - What is Third Party Reimbursement? webpage for more information.

Both the initial MHCP application and renewal application that the parent or guardian completes contain the language required under FERPA and IDEA about permission for a school district to access the child’s health information and to bill for services. Check the signature page of the most current version of the application to review the parent or guardian agreements and rights. Refer to the appendix for the Notice of Privacy Practices. The section on release and sharing of medical information contains information about how records may be released to several parties including schools.

Note: A parent or guardian must sign the MHCP application consent statement for MA to cover heath care costs. However, a parent or guardian has the right under FERPA to deny consent to a school district to access information and to bill MHCP. A parent or guardian may stop consent for sharing records with a school district at any time. These two rights are covered in the MDE Notice of Procedural Safeguards.