The Department of Health keeps 15% for program costs, and school boards or approved provider organizations must sign hold harmless agreements and may have to repay disallowances.
CHAPTER 56. REIMBURSEMENT OF MEDICAID SCHOOL-BASED ADMINISTRATIVE CLAIMING §2721. Intergovernmental transfers to school boards for administrative claims A.(1) All money which is received as a result of the intergovernmental transfer program provided in this Chapter shall be appropriated solely and exclusively for administrative claiming which is reimbursable under the federal Medicaid program. (2) The Louisiana Department of Health shall retain, for reasonable costs incurred in preparing the application and for implementing and monitoring the intergovernmental transfer program established in this Chapter and to provide additional support to the Medicaid program, an amount equal to fifteen percent of the gross federal financial participation generated from the certification of funds by participating public entities. (3) The remaining funds shall be transferred directly to reimburse public schools for certain costs which shall be based upon the actual costs of administrative outreach provided by the school districts on a pro rata basis. B. The department shall be indemnified by either the subject school board, or by a single provider organization acting as agent for the school board, for any disallowances which are imposed by the Centers for Medicare and Medicaid Services related to school-based administrative claims of the school board. Each school board, and each single provider organization which acts on behalf of a school board as approved by the Centers for Medicare and Medicaid Services, shall enter into a hold harmless agreement with the department. If the Centers for Medicare and Medicaid Services should impose a disallowance upon the department, the school board or its single provider organization shall indemnify the department through future payment recoupments or in a lump sum repayment, whichever is deemed appropriate by the department. This indemnification is limited to the amount of funds transferred to each entity pursuant to this Chapter. Acts 2001, No. 776, §1, eff. June 26, 2001; Acts 2004, No. 660, §1, eff. July 1, 2004.