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Billing change could recoup costs

Published (3/11/2011)
By Kris Berggren
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Minnesota school districts are eligible for reimbursement from the federal government or private insurers for health-related services they provide to students with an individualized education program, but at least 20 districts don’t apply for it.

Rep. Carol McFarlane (R-White Bear Lake) sponsors HF535, which would streamline third-party billing. The changes would cost a projected $472,000 for fiscal years 2013 and 2014, mostly for Human Services Department personnel who handle the claims, but school districts stand to gain millions.

McFarlane told members of the House Education Finance Committee March 9 the number of districts who do apply has grown significantly from 77 districts that received $541,000 in such reimbursements in 2000-2001 to 319 districts receiving $34 million in 2009-2010. The committee approved the bill and held it over for possible inclusion in a later bill. It has no Senate companion.

McFarlane said the application process remains cumbersome for districts and cloudy for some parents who are required to sign a consent form but don’t understand what it’s for. Parents would consent to allow districts to release information in a child’s IEP to the human services commissioner so the district may be reimbursed.

The bill would require a district to provide an initial and annual written notice to parents of its intent to seek reimbursement. Parents would have the right to request a copy of the child’s education records on what services are being disclosed to a third-party payer; withdraw consent for such disclosure with no negative consequence to their eligibility for MinnesotaCare or Medical Assistance, including a written statement to that effect. The bill also would require that parents of a child with a disability be informed “in understandable language” of procedural safeguards and parents’ ability to withdraw consent.

“Federal flow-through dollars that have no cost to Minnesota taxpayers are very important to our school districts and we want to be able to access these dollars, certainly, at a time when revenue for schools is needed,” said Kay Dole, a district program facilitator with Minneapolis Public Schools.

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