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Guidance on the Implementation of the New Regulation 101 Provision Regarding Payment of Contracted Services for Special Education

Guidance on the Implementation of the New Regulation 101 Provision Regarding Payment of Contracted Services for Special Education

INFORMATIONAL LETTER: 70
POLICY CODE: BGB


TO:
    Superintendents of Schools, Special Education Directors, CDS Regional Board Chairs, CDS Regional Site Directors
FROM: Susan A. Gendron, Commissioner
DATE:   February 1, 2010
RE:         Guidance on the Implementation of the New Regulation 101 Provision Regarding Payment of Contracted Services for Special Education

Provision:


The revised regulation includes a new provision regarding Payment for Contracted Services. The provision, in Section XVIII.1.C(3)(d) of the rule, reads as follows:

(d)  Payment for Contracted Services
Payment for services by school administrative units will be no higher than the average  Medicaid rate paid for comparable services and will be considered payment in full.

The inclusion of this language in the regulation was recommended by several special education directors as an effective tool to allow school administrative units [SAUs] to contain costs while maintaining services to children.

The new language in Section XVIII on school finance is to address the Department’s intent to not exceed minimum federal requirements and to address cost containment and efficiencies through fidelity of implementation.

Procedures to be Implemented:

1. School administrative units will need to examine their contracts with their contracted providers to determine if there are termination clauses that would allow the development of new contracts at new rates.

2. When a school administrative unit experiences situations where there is not a contracted provider that will provide a child’s free appropriate public education services at the Medicaid rate, the School administrative unit should develop a short term contract at a negotiated rate to ensure that the child receives the services on the individualized education plan.

3. The school administrative unit will need to document the efforts that it has undertaken, such as advertising, contacting agencies, etc., to find an independent contractor that is willing to accept the Medicaid rate.

Has This Been Done Before:

The Child Development Services System has been utilizing the Medicaid rates for over 10 years and could serve as excellent resources on the process in the field.
The regulations are located at http://www.maine.gov/education/rulechanges.htm and the direct links to the documents are:

Emergency Regulation http://www.maine.gov/education/071c101-2009emergencyjanuary2010.pdf

Summary of Comments/Responses http://www.maine.gov/education/summaryofcomments101Emergency2009.pdf

Medicaid Rates for School Based Health Services

The emergency regulation became effective on January 19, 2010 upon filing with the Secretary of State. If you have questions please contact  Jaci Holmes, Federal State Legislative Liaison by email at jaci.holmes@maine.gov or by phone at 624-6620.