The bill S.200, introduced by Senator Lyons, aims to transfer sole authority over the Medicaid school-based services program to the Agency of Human Services in Vermont. It establishes a new section, 33 V.S.A. 1904, which outlines the responsibilities of the Agency of Human Services in ensuring compliance with federal Medicaid requirements and maximizing federal reimbursement for medically related services provided to eligible students. The Agency of Education will coordinate the program with statewide education policies and may specify the use of program funds. Additionally, the bill creates a School-Based Medicaid Reimbursement Fund to manage federal reimbursements and outlines the distribution of these funds to supervisory unions and the administrative costs for the Agencies of Education and Human Services.

The bill also amends 16 V.S.A. 2959a, changing the focus from "Education Medicaid Receipts" to "Medicaid School-Based Services Program" and clarifying the responsibilities of supervisory unions in identifying eligible students and submitting Medicaid-compliant cost reports. It removes the previous establishment of a Medicaid Reimbursement Special Fund within the Agency of Education and instead directs funds to the newly created School-Based Medicaid Reimbursement Fund. The bill stipulates that the Agency of Education will adopt rules regarding the use of these reimbursements and coordination with state-placed students. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 16-2959a