Three school districts want a court to force New York state to let them collect millions in Medicaid money for services to children with disabilities.
The Kiryas Joel, Washingtonville and East Ramapo school districts filed a joint claim, asking a court to stop the state from barring collection of more than a year’s worth of reimbursements. At issue are repayments for services such as speech pathology and psychological counseling for Medicaid-eligible students with disabilities. The petition was filed in the state Supreme Court in Albany County.
The state told districts in July 2009 that it was freezing payments for the School Supportive Health Services Program while it worked out new rules. Earlier that month, the state settled a longstanding face-off with the feds.
The federal government claimed that for more than a decade New York failed to appropriately administer its programs, causing improperly documented claims and bad payments. The settlement included a record $540 million payment by the state and a compliance program.
The court’s ruling could impact every district in the state, said the plaintiffs’ attorney, Mark Rushfield, of Shaw, Perelson, May and Lambert.
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