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Commission examines 'episodes of treatment' and court-ordered placements as drivers of special-education costs

Commission to Study the Cost of Special Education · October 29, 2025
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Summary

The commission heard that episodes of treatment are medical placements coordinated by DHHS and parents; DOE pays allowable special-education and related services while DHHS or Medicaid typically pays placement costs. Episodes vary widely in length and reimbursement; recent legislative language changes narrowed state responsibility for placement.

Commissioners discussed how episodes of treatment and court-ordered placements affect special-education spending and state/district liability.

Rebecca Ferdette of the Department of Education explained that "episodes of treatment" are placements determined in coordination with the Department of Health and Human Services and a parent when a child's needs are primarily medical or mental-health related. DOE staff said the state’s recent statutory language clarified that episodes reimburse only…

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