The Buckeye Association of School Administrators (BASA), the Ohio Association of School Business Officials (OASBO) and the Ohio School Boards Association (OSBA) issued a statement this week in support of the lawsuit filed by the Delaware County MR/DD Board last month against the Ohio Department of Jobs and Family Services (ODJFS).
The Franklin County Common Pleas case known as the Zimmerman lawsuit centers on an ODJFS rule establishing new Federal Medicaid related rates in March, 2004. The lawsuit charges that the rates being promulgated are arbitrary and capricious and that the rates will damage both county MR/DD board and school district ability to manage the cost of delivering services to eligible children and adults with developmental disabilities.
The three organizations pointed out that the methodology for developing the new fee structure is unreasonable, resulting in fees that are inflated and not consistent. School districts will be affected differently based on the county where they are located. Some districts could receive less than needed to cover costs for the services they provide with no way to recover the shortfall. Other districts may initially receive significant over-payments that would be subject to recall by the Federal Center for Medicare/Medicaid Services (CMS).
The rates could be deemed higher than those considered to be usual and customary, resulting in the need for school districts to repay large amounts of money to the Federal government at the end of each year. "The inconsistency in the new fee structure is unfair and will create significant cash-flow problems for districts," stated Fred Pausch, Director of Legislative Services for OSBA. "With districts already experiencing fiscal stress for so many other reasons, the effects of this new rule are especially problematic." "We believe that under the current rule, school districts could also be subject to additional financial risk.