2024-02-20                     House Journal                      Page 1550
HB 343                                                                                                                        
HOUSE BILL NO. 343 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act relating to medical assistance coverage for rehabilitative,                                                         
    mandatory, and optional services furnished or paid for by a school                                                          
    district on behalf of certain children."                                                                                    
                                                                                                                                
was read the first time and referred to the Health & Social Services                                                            
Committee.                                                                                                                      
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Education & Early Development                                                                                
2.  Zero, Dept. of Health                                                                                                       
3.  Zero, Dept. of Health                                                                                                       
                                                                                                                                
The Governor's transmittal letter dated February 16 follows:                                                                    
                                                                                                                                
"Dear Speaker Tilton:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to elimination of the                                                           
individualized education program requirement for certain services                                                               
furnished to Medicaid-eligible children by school districts.                                                                    
                                                                                                                                
This bill would align State law with revised guidance published by the                                                          
Centers for Medicare and Medicaid (CMS) on May 18, 2023,                                                                        
regarding Medicaid payments for rehabilitative, mandatory, and                                                                  
optional services furnished to Medicaid-eligible children by school                                                             
districts. These services are often referred to as school-based services,                                                       
or SBS. The revised CMS guidance allows for Medicaid to pay for                                                                 
SBS provided in schools to Medicaid-eligible children with or without                                                           
an individualized education program (IEP).                                                                                      
                                                                                                                                
State law currently limits the Department of Health's ability to pay                                                            
school districts for school-based services to those provided to an                                                              
"eligible child with a disability" who requires the services as part of                                                         
the child's IEP. This bill would allow payment to school districts for                                                          
services provided to any Medicaid-eligible child by amending the                                                                

2024-02-20                     House Journal                      Page 1551
language that limits the payments to a "child with a disability" and by                                                         
deleting the IEP requirement.                                                                                                   
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"