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Published in Print: October 18, 2000, as Medicaid Reimbursement

Medicaid Reimbursement

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The following shows the variation in Medicaid reimbursements to schools in fiscal 1999. Some states eventually give districts all the money to which they're entitled, although it may come from other funds, the GAO says.
Florida Illinois Michigan Minnesota New Jersey Vermont
Per $100.00 claimed $100.00 $100.00 $100.00 $100.00 $100.00 $100.00
Local funds useda (44.18) (50.00 (47.28) 0 (50.00) (38.03)
Amount retained by state 0 (5.00)b (21.09) 0 (42.50) (37.18)
Total Medicaid funds received by school district 55.82 45.00 31.63 100.00 7.50 24.79
Amount paid to private firm by school districtc (10.05) (8.25) (10.54) d e 0
Net amount to school district $45.77 $35.75 $21.09 $100.00 $7.50 $24.79
NOTE: a States are required to pay $50 for every $50 the federal government pays for Medicaid services. These funds reflect the portion local governments pay to cover the states' share. 
bWhen total Medicaid payments to an Illinois school district exceed $1 million in a year, 10 percent of the portion exceeding $1 million is retained for the state's general-revenue fund. According to Illinois officials, 22 of the state's 900 school districts received more than $1 million. 
cPrivate firms' contingency fees vary across school districts and states; thus, the dollars reported in this table are estimates of typical contingency fees paid by school districts. 
dMinnesota state officials were not aware of any contingency-fee arrangements being used by school districts; thus, the chart doesn't report dollars in this example. 
eThe state of New Jersey pays the firm $2.55 from the $42.50 it retains.

SOURCE: U.S. General Accounting Office.

Vol. 20, Issue 7, Page 12

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