2024-02-19                     Senate Journal                      Page 1665
SB 240                                                                                                                        
SENATE BILL NO. 240 BY THE SENATE 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 and Social Services                                                          
Committee.                                                                                                                      
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Education and Early                                                                     
          Development                                                                                                           
 Fiscal Note No. 2, zero, Department of Health                                                                                  
 Fiscal Note No. 3, zero, Department of Health                                                                                  
                                                                                                                                
                                                                                                                                

2024-02-19                     Senate Journal                      Page 1666
Governor's transmittal letter dated February 16:                                                                                
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
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                                                                
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