HOUSE BILL REPORT

HB 2014

BYRepresentatives 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 REPORTED BY COMMITTEE ON APPROPRIATIONS MARCH 5, 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:

BILL AS AMENDED:  School districts may bill the Department of Social and Health Services (DSHS) for costs of medical assistance services provided to a handicapped student under an individualized educational plan.  When the Superintendent of Public Instruction (SPI) is notified that the district has received the Medicaid payment, the equivalent of the state contribution (47 percent) is deducted from the district's handicapped education allocation by SPI.  The federal portion of the Medicaid payment is not deducted and is therefore a net gain.  DSHS is reimbursed from handicapped education appropriations for the state share of the Medicaid payments.

The qualification for medical assistance shall not take effect until the Department of Social and Health Services and the Superintendent of Public Instruction have entered into a cooperative process to be implemented in the 1990-91 school year.

AMENDED BILL COMPARED TO ORIGINAL:  The date for implementation of the procedure for collecting reimbursement from medicaid is moved from the 1989-90 school year to the 1990-91 school year.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS:  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.

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.