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Medicaid Funding Cut To Cost Schools

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By RONNIE BLAIR, The Tampa Tribune

Published: March 13, 2008

LAND O' LAKES - A planned cut in Medicaid funding could cost the Pasco County School District about $1.2 million, district officials say.

The cuts are happening to school districts nationally because of an administrative rule change at the federal level that the Centers for Medicare and Medicaid Services said was aimed at eliminating fraud, waste and abuse.

The school district is working with U.S. Rep. Gus Bilirakis, R-Palm Harbor, and U.S. Rep. Ginny Brown-Waite, R-Brooksville, to get a moratorium placed on the cuts, said Summer Romagnoli, a district spokeswoman.

Because the cuts came through an administrative rule change, Congress never voted on them, Romagnoli said.

Medicaid is a federal program that provides health care for the poor.

The school district uses the Medicaid money for a number of programs, including medical services, dental services and mental health counseling for needy students.

Part of the money is divided among the schools, with each school receiving $1,000 plus $1 for each student enrolled. Principals use the money as a supplement for their school clinics, after-hours programs or other needs.

Assistant Superintendent Sandy Ramos told the Pasco County School Board about the anticipated cuts at a board meeting last week, and Superintendent Heather Fiorentino said the cuts look to be "pretty much a done deal."

The cuts are scheduled to take effect Aug. 28 and come at a time when the school district already is anticipating funding cuts.

The school district isn't alone in trying to get Congress to intervene.

The National Governors Association, in a letter dated Feb. 26, called on Congress to delay changes to Medicaid, saying the plans would shift an estimated $13 billion in federal costs to the states.

"Many of the rules changes were rejected by Congress when the Deficit Reduction Act of 2005 was considered," the governors said in the letter. "Furthermore, they are particularly onerous given the difficult fiscal situation in many states."

The Centers for Medicare and Medicaid Services announced the rules change affecting schools in December, saying the federal government has had "long-standing concerns about improper billing by school districts for administrative costs and transportation services" under the Medicaid program.

In some states, schools have claimed more federal dollars for administrative costs than for the services themselves, the federal agency said in announcing the cuts.

Schools will still receive reimbursement for some direct medical services provided to children on Medicaid, such as physical therapy, speech therapy and transportation to medical services during the school day, the agency said.

Reporter Ronnie Blair can be reached at (813) 948-4218 or rblair@tampatrib.com.

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