HOUSE BILL REPORT

SHB 2014

As Amended by the Senate

BYHouse Committee on Appropriations (originally sponsored by Representatives Peery, Locke, Valle, Winsley, Crane and O'Brien)

Revising provisions for special education programs for handicapped children.

House Committe on Education

Majority Report:  Do pass with amendment.  (17)

      Signed by Representatives Peery, Chair; G. Fisher, Vice Chair; Betrozoff, Ranking Republican Member; Brumsickle, Cole, Dorn, Fuhrman, Holland, Horn, Jones, P. King, Phillips, Pruitt, Rayburn, Schoon, Walker and K. Wilson.

House Staff:Janet Peterson (786-7136)

Rereferred House Committee on Appropriations

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (25)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Belcher, Bowman, Brekke, Brough, Dorn, Ebersole, Ferguson, Hine, Holland, May, McLean, Nealey, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Janet Peterson (786-7136)

AS PASSED HOUSE MARCH 14, 1989

BACKGROUND:

On July 1, 1988 Public Law 100-360, The Medicare Catastrophic Coverage Act was signed into law.  Although relating primarily to medicare, significant amendments to the Social Security Act allow the financing of covered services for handicapped children under an Individual Educational Plan.

Currently, the Department of Social and Health Services (DSHS) is reimbursed by the federal government at a rate of 53 percent for Medicaid payments under Title XIX of the Social Security Act.  Therefore, the state pays 47 percent of these costs.  However, no process currently exists for school districts in Washington State to bill Medicaid for costs of medical services provided for eligible handicapped children.

SUMMARY:

School districts may receive Medicaid payments for eligible medical services provided to students.  The billing system for school districts to receive Medicaid payments will be implemented during the 1989-90 school year, but may be phased in by region.  The intent is that the system be in operation in selected regions of the state during the first half of the school year.  The billing system is to be extended state- wide prior to the start of the 1990-91 school year.  SPI and DSHS have joint responsibility for planning and development of this process and may contract with educational service districts or other organizations for billing services.  The planning process will include consideration of whether the state's medical assistance plan should expand coverage for services provided to children.  SPI and DSHS must submit a joint progress report to the House Appropriations Committee and the Senate Ways & Means Committee before January 15, 1990.

EFFECT OF SENATE AMENDMENTS:  The implementation of the billing system for Medicaid payments to school districts is delayed until the 1990-91 school year, with implementation phased in by region.  The billing system is to be operating state-wide by the start of the 1991-92 school year.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Education)  Ron W. Kero, Department of Social and Health Services; Judy Hartmann and Judy Schrag, Superintendent of Public Instruction.

(Appropriations)  None Presented.

House Committee - Testified Against:      (Education)  None Presented.

(Appropriations)  None Presented.

House Committee - Testimony For:    (Education) There is support for the concept and similar programs have been instituted in other states.  These programs have employed a centralized billing procedure which is provided by a contractor.  In this state central billing might be set up in one of the educational service districts.  This will make some federal money available to school districts which have not been eligible before.

(Appropriations)  None Presented.

House Committee - Testimony Against:      (Education)  None Presented

(Appropriations)  None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 98