2016 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Peace
Fund Educational Costs for Students Placed in Psychiatric or Residential Treatment Facilities

Item 285 #2h

Item 285 #2h

First Year - FY2017 Second Year - FY2018
Health and Human Resources
Children's Services Act FY2017 $10,729,920 FY2018 $10,729,920 GF

Page 232, line 39, strike "$288,022,851" and insert "$298,752,771".
Page 232, line 39, strike "$287,078,273" and insert "$297,808,193".

Page 235, after line 25, insert:

"f. Effective July 1, 2016 this item shall include the educational services costs for students whose direct placement in or admittance to state or privately operated psychiatric or residential treatment facilities has been approved by the Virginia Medicaid program.  These educational services shall be reimbursed at the rate in effect on July 1, 2015 and shall not include a local match. The Department of Medical Assistance Services and its Behavioral Heath Services Administrator shall immediately notify the Office of Children's Services when such a placement or admission has been made. The Office of Children's Services shall transfer funds to the local responsible agencies as they are needed to pay provider claims for educational services."


(This amendment provides $10.7 million each year from the general fund to fund the educational costs for students placed in psychiatric or residential treatment facilities for non-educational reasons. Over the past 15 years, more children have been placed in "Level C" psychiatric residential treatment facilities through authorization and reimbursement by the Virginia Medicaid program without involvement of the local CSA structure and process. The provision of educational services is required by licensing regulations. Medicaid does not allow payment for education services. Consequently, there was no formal mechanism for reimbursing these facilities for the educational costs of Medicaid eligible children. In fiscal year 2015, 524 children were placed in residential treatment facilities through Medicaid outside the CSA process and without any state funding for education services. This is a recommendation of the Children's Services Act State Executive Council (SEC) based on findings from a SEC work group that examined this issue in 2015.)