More than 500 Texas school districts are on the hook for $16 million in funds the federal government says was improperly billed through the Medicaid system. Many of them don’t have the money to pay it back.
The School Health and Related Services (SHARS) program allows Texas schools to bill Medicaid for eligible services such as nurses and accommodations for disabled students. It’s been in place since 2010, though there have been some severe cuts to it. This year, the Texas Health and Human Services Commission slashed $400 million from the program, leading to some districts exiting it altogether.
The federal government audited Texas’s use of funds starting in 2017 and says that districts have billed $16 million in ineligible costs, requiring repayment from the state. The state is now trying and recoup the loss from the districts themselves. Some schools owe as little as $100, but many owe more than $100,000. Texas Tribune spoke to several districts that are finding it hard to repay the amounts in the middle of a school year when all budgets have been finalized.
Source: Texas Schools Struggle To Pay Back Federal Medicaid Funds / Reform Austin