VT H0558

Transfers sole authority over Vermont's Medicaid school-based services program from shared oversight to the Agency of Human Services, which will determine and maintain federal compliance as the State Medicaid agency.

Establishes a new School-Based Medicaid Reimbursement Fund administered by the Agency of Human Services to receive and allocate federal reimbursements for medically related services delivered to Medicaid-eligible students.

Allocates 55% of federal reimbursement monies to supervisory unions based on their Medicaid cost reports to pay for administering claims and delivering medically related services (increased from the previous 50%).

Caps administrative costs for the Agencies of Education and Human Services at 25% of federal reimbursements (reduced from the previous 30%), with both agencies required to enter a memorandum of understanding on fund allocation.

Requires any remaining balance in the School-Based Medicaid Reimbursement Fund at fiscal year end to be transferred to the Education Fund, with an effective date of July 1, 2026.