Free Care Rule Regulatory Change: New Opportunities for Medicaid Reimbursement in Schools
/Since 1997, the “free care” rule has stated that Medicaid will not pay for services that are offered to the general public free of charge. The rule has stood as a significant barrier for schools to receive Medicaid reimbursement for health services provided to students enrolled in Medicaid. On December 15, 2014, the Centers for Medicare and Medicaid Services (CMS) issued a letter to State Medicaid Directors informing them of a decision to withdraw prior regulatory guidance on the free care rule. This Q&A explains how this important reversal of Medicaid policy will impact coverage of school-based interventions for low-income children with asthma.