President’s Fiscal Year 2007 Budget Proposal
The Administration’s fiscal year 2007 budget totals $2.77 trillion. In an effort to achieve savings, the Administration proposes to prohibit federal reimbursement for Medicaid school-based administration or transportation costs. The school-based services proposal would save $615 million in FY 2007 and $3.645 billion over five years. The Administration also proposes to clarify allowable services that can be claimed as rehabilitation services. This proposal will reduce federal outlays in FY 2007 by $225 million and $2.286 billion over five years. Additional proposals include provider tax reform and capping payments to government providers.
June 29, 2006 Senate Letter to Leavitt on Medicaid Administrative Proposals (.pdf)
June 27, 2006 NGA Letter to Leavitt on Medicaid Administrative Proposals (.pdf)
May 8, 2006 House Letter to Leavitt on Medicaid Administrative Proposals (.pdf)
School-Based Services
2003 CMS Medicaid School Based Administrative Claiming Guide
Rehabilitation Option
July 7, 2006 Senate Letter to McClellan (.pdf)

