U.S. to Trim School Medicaid Payments After Freeze

The Bush administration has followed through on a proposal to stop reimbursing schools for certain services provided to Medicaid-eligible students, but school groups say they plan to use the six months before the new rules go into effect to fight the changes.

The Centers for Medicare and Medicaid Services plans to halt the reimbursements for the costs of transporting eligible children from home to school and back. School districts contend they are entitled to those transportation expenses when Medicaid-eligible services such as speech or physical therapy are provided at school.

Medicaid would also stop paying school administrative costs for identifying and enrolling Medicaid-eligible students, and for coordinating the provision of medical services covered under...