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INFORMATIONAL LETTER NO:68

POLICY CODE: IHBA

TO: Superintendents of Schools

FROM: Susan A. Gendron, Commissioner

DATE: January 15, 2004

RE: MaineCare School-Based Rehabilitation Services

In November 2002 during the budget curtailments, then Commissioner Kevin Concannon discussed with the federal Center for Medicaid and Medicare Services, the concept of billing for rate increases for the school based rehabilitation program for the time period of January 1, 2001 through June 30, 2003. The federal Center for Medicaid and Medicare Services approved the concept of cost of living rate increases.

Former Commissioner Concannon proposed to the Appropriations Committee a de-appropriation of state funds and allocation of federal funds on a one-time basis associated with increasing the federal share of school-based rehabilitation services for allowable cost-of-living adjustments for the time period of January 1, 2001 through June 30, 2003. The five million dollar de-appropriation from state and allocation to federal by the Department of Human Services to be done at the State level would avoid a curtailment of General Purpose Aid (GPA).

As the Department of Human Services has undergone a state audit, it has been brought to the departmentís attention that the process undertaken was not correct. Therefore, the Bureau of Medical Services needs to implement a revised procedure whereby each school administrative unit will then send a check to the Bureau of Medical Services for an amount that reflects only the rate enhancement.

To correct the process and avoid any future audit disallowances from the Federal government, the State Department of Human Services, Bureau of Medical Services, will be sending you a check for payment of the federal share of the cost-of-living adjustment. Immediately upon receipt, we are requesting that this check be deposited in Revenue Fund 20, Code 4585 and that another check for that exact same amount be written from Fund 20, Function 520, Object 921. The check must be made payable to the Treasurer, State of Maine, and mailed to the Bureau of Medical Services, 11 State House Station, Augusta, Maine 04333.