Administrators for special education, school nurses and nonprofit advocates asked the Joint Committee on Education to back legislation that would change how MassHealth reimbursements are handled so funds return directly to the districts that provide school‑based nursing and related services.

Why it matters: Witnesses said the current claim structure disincentivizes districts from billing because reimbursements are not consistently directed back to the schools that delivered services. The proposed change would allow districts to recapture federal Medicaid funds and reinvest them in school health staff, reducing pressure on local budgets and shrinking service gaps for students with disabilities and high needs.

Supporters’ arguments: Carla Jents, Executive Director of the Massachusetts Administrators for Special Education, said special‑education caseloads and behavioral health needs have increased and district budgets are strained. Kelly English of the Children's Mental Health Campaign said up to 80 percent of children who receive mental‑health care do so at school, underscoring the opportunity to leverage federal funds.

Implementation notes: Witnesses asked for careful safeguards to ensure funds are used for eligible services, for clear administrative guidance from the state Medicaid agency, and for technical assistance so districts can adopt billing practices.

Next steps: The committee heard House Bill 545 and supporters asked for a favorable report and guidance on rule changes, audit processes, and technical supports for districts to implement billing and reinvestment.