Kendall County Special Education Cooperative Logo Kendall County Special Education Cooperative

Lynda Shanks


Amy Lee

Assistant Director
(630) 553-5833  |  Fax: (630) 553-5872

513 Federal Matching Funds Under Medicaid

Use of Federal Matching Funds Under The Medicaid (Title XIX) or Children’s Health Insurance (KidCare; Title XXI) Program to Supplement Special Education Programs and Services (if the School District is Participating in One or More of those Federal Programs)

A. The School District may look to non-educational entities, such as Medicaid and insurance programs, to pay for required special education services for which such entities are otherwise responsible.


B. The School District will use federal matching funds received under Medicaid or a children’s health insurance program (e.g., KidCare, SCHIP) only to supplement special education programs and services.

C. In seeking matching funds under Medicaid or a children’s health insurance program, the School District:

  1. May not condition a child’s FAPE on their parent(s)’ enrollment in Medicaid or
    insurance programs;
  2. May not require parent(s) to incur an out-of-pocket expense (e.g., payment of a
    deductible or co-pay amount) for services rendered in providing FAPE, except the
    School District may use Part B funds to pay the parent(s)’ costs for such services;
  3. May not use a child’s Medicaid or health insurance benefits if such use would:
    1. Decrease available lifetime coverage or any other insured benefit;
    2. Result in the family paying for services that would otherwise be covered by Medicaid or health insurance and that are required for the child outside of the time the child is in school;
    3. Increase premiums or lead to the discontinuation of benefits or insurance; or
    4. Risk loss of home and community-based waiver eligibility, based on aggregate health-related expenditures;
  4. Must obtain voluntary, informed, written parental consent each time access to Medicaid or insurance benefits is sought; and
  5. Must notify parent(s) that their refusal to allow the School District’s access to their public benefits or insurance does not relieve the School District of its obligation to provide FAPE at no cost to the parent(s).



34 C.F.R. § 300.154 (methods of ensuring services).

23 111. Admin. Code § 226.770 (special education fiscal provisions).