Schools might no longer recoup money spent helping low-income children with disabilities under a rule change proposed by the Bush administration, education groups warned Tuesday.
Under the federal Medicaid program, schools are reimbursed for administrative costs related to identifying children eligible for the program, enrolling them and coordinating health-related services.
The U.S. Department of Health and Human Services estimates the change could save $3.65 billion over the next five years.
The department found the costs were "not necessary for the proper and efficient administration" of Medicaid and were not eligible for repayments, according to the proposal, published this month.
Sally Howell, executive director of the Alabama Association of School Boards, said the federal government does not plan to change its requirements that schools continue to offer services, such as fitting specialized buses, driving children to medical appointments and coordinating screenings.
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