STATEHOUSE (Dec. 17, 2020) — State Sen. Andy Zay (R-Huntington) recently filed Senate Bill 51, which would allow Indiana schools to claim federal Medicaid reimbursements for providing Individualized Education Program (IEP) services and special education services.
The Teacher Compensation Commission recently released a report detailing 37 recommendations on how to reach the $600 million dollars needed to raise the average Hoosier teacher's salary to over $60,000. This legislation, which Zay has championed for years, could free up $100-$200 million in funds for schools to use toward teacher pay.
"Recommendation No. 20 in the Teacher Compensation Commission's report suggests SB 51 could be a solution to achieve the goal of raising Indiana's average teacher pay," Zay said. "If we work aggressively to capture Medicaid dollars for our IEP students and other special-needs students, my bill could make available up to one-third of the amount needed to get to the $60,000 average teacher salary."
Indiana's neighboring states currently bring in $100-$150 million more than Indiana in Medicaid reimbursement funds. SB 51 would help Indiana capture these Medicaid reimbursements at a rate closer to that of neighboring states.
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