Jun 24, 2025

Maximizing Medicaid Reimbursement for Related Services: A Vital Strategy for School Budgets

As school districts across the country continue to face tightening budgets, one often-overlooked funding opportunity can make a major difference: Medicaid reimbursement for related services. For districts serving students with special needs, this resource is not just helpful—it’s essential.

At Aequor, we understand the financial challenges educational leaders face, especially when it comes to supporting students who require occupational therapy (OT), physical therapy (PT), speech-language pathology (SLP), and other related services. That’s why we’re encouraging our district partners to explore and maximize Medicaid reimbursement programs wherever possible. Doing so can unlock crucial funding streams that support the delivery of high-quality services—and help ensure every student receives the support they deserve.

What Is Medicaid Reimbursement for Related Services?

Under the Individuals with Disabilities Education Act (IDEA), schools are required to provide certain related services to students with IEPs. If those students are Medicaid eligible, schools may be able to receive reimbursement from Medicaid for medically necessary services provided at school—such as OT, PT, SLP, nursing services and behavioral health services.

Each state administers its own Medicaid program, and while rules vary, most states allow Local Education Agencies (LEAs) to seek reimbursement for these services delivered by qualified professionals. Medicaid currently pays $4-6 billion every year to schools for medicaid reimbursement programs, even though many schools are not maximizing this resource.

Why It Matters Now More Than Ever

1. Shrinking Budgets, Growing Needs

Many districts are contending with rising costs, staffing shortages, and increased student needs following the pandemic. Under the current U.S. administration, federal education budgets are shrinking. Medicaid reimbursement offers a sustainable, long term funding stream to help offset these pressures.

2. Supporting Service Continuity

Reimbursed funds can be reinvested directly into hiring or retaining qualified providers, purchasing updated therapy equipment, or expanding service availability. That means students continue to get the care they need, and school districts can avoid difficult decisions like cutting services or increasing caseloads.

3. Freeing Up General Funds

How Aequor Can Help

Staffing related services is a challenge. Aequor specializes in staffing qualified OT, PT, SLP, school psychologists, and other related service professionals. Our candidates are not only credentialed, but also knowledgeable in compliance, documentation, and Medicaid billing support where needed.

We work with school districts across the country to:

1. Fill critical vacancies quickly with Medicaid-eligible professionals
2. Provide continuity of care for students with IEPs
3. Support onboarding and documentation compliance for Medicaid audits

Tips for Districts Looking to Maximize Medicaid Reimbursement

1. Audit your current provider staff to ensure you’re fully utilizing reimbursable services.
2. Train staff on proper documentation and service logging, which is essential for Medicaid compliance.
3. Review your state’s Medicaid School Based Services program to understand eligibility, covered services, and billing requirements.
4. Partner with staffing agencies like Aequor that can ensure credentialing and billing alignment from day one.

Every Dollar Counts—Let’s Make It Work for Students

Medicaid reimbursement isn’t just a billing opportunity—it’s a chance to reinvest in the future of special education. With the right staff, systems, and support in place, districts can boost both their financial health and the well-being of their students.

Need qualified providers who can help you meet Medicaid requirements?
Aequor is here to help. Contact us today to learn how our contract educators and related service professionals can support your district’s goals—and your bottom line.

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