April 2013 Client Notice on July 1, 2013 effective date of federal 2013 consent regulation.


sent: Wed 4/24/2013 3:20 PM


Subject: FW: Effective Date for Part B Insurance Regulations
Importance: High


Good Afternoon All, 


The United States Department of Education provided us with a copy of a notice they sent our late yesterday afternoon. They did this because we had submitted a question concerning the required parental notification of rights and the regulations effective date of March, 2013. In this notice they advised that while they wish for states to comply as soon as possible they cannot enforce the requirement until July 1, 2013. As of that date it is required that parents be notified of their rights before Medicaid billing can continue.


As a result we will continue billing through the end of this school year, June 30, 2013 based on the existing consents in Ksystems. However, as of July 1, 2013 we will not submit any billings unless the parents have been provided a notification of their right prior to the signing of the consent form. Of course if that notification has already been provided, and the information is entered into Ksystems, billing will continue uninterrupted. Please be aware that due to the timing of New York State’s changes you may not receive any guidance on this from the State until after school is closed for the summer.


Cycle 1865 deadline is May 2nd,  claims must be approved in Ksystems by the close of business on Tuesday April 30th to be included in the Cycle 1865 deadline.


Below is a copy of the notice US Education sent to states. For further information please contact us or visit www.kinneyassoc.com and click on 2013 Federal Consent Information.



From: Corr, Gregg [mailto:Gregg.Corr@ed.gov]
Sent: Tuesday, April 23, 2013 4:59 PM
Subject: Effective Date for Part B Insurance Regulations


Dear SEA Director,


Recently we have received inquiries regarding the IDEA Part B Final Regulations related to parental consent to access public benefits or insurance (e.g., Medicaid), which were published in the Federal Register on February 14, 2013 at 78 Fed. Reg. 10525.  These regulations, which amended 34 CFR §300.154(d)(2), became effective on March 18, 2013.  We have been asked whether parental notification described in the new 34 CFR §300.154(d)(2)(v) is required before a public agency continues to access the public benefits or insurance program of a parent who has provided consent to disclose personally identifiable information for billing purposes under the previous requirements of 34 CFR §300.154(d)(2)(iv).


These final regulations change the existing parental consent requirements in new 34 CFR §300.154(d)(2)(iv) and add a parental notification requirement in new 34 CFR §300.154(d)(2)(2)(v).  For further information on these new requirements please see the Non-Regulatory Guidance on the IDEA Part B Regulations Regarding Parental Consent for the Use of Public Benefits or Insurance to Pay for Services under IDEA at: http://www2.ed.gov/policy/speced/reg/idea/part-b/part-b-parental-consent.html  


While we encourage States to comply with these new regulations as soon as possible, under long-established U.S. Supreme Court precedent from the 1980’s, the general rule is that as a condition of receiving Federal fiscal year or FFY 2012 grant funds, State educational agencies agreed to comply with the grant terms and conditions in place when each State accepted its FFY 2012 grant funds.   Those terms and conditions include compliance with the requirements of the prior 34 CFR §300.154(d)(2)(iv) of the regulations that were in place when States received and accepted their IDEA Part B funds, which occurred, for almost all States, on July 1, 2012.   Thus, the prior 34 CFR §300.154(d)(2)(iv) that was in effect on July 1, 2012 is the regulation that States are required to implement throughout the FFY 2012 grant year. 


States will be required to fully implement new 34 CFR §300.154(d)(2)(iv) and (v) once they accept their FFY 2013 awards, which for most States will be when they receive and accept their FFY 2013 Part B grant funds, beginning on July 1, 2013.  Therefore, as of July 1, 2013, a public agency must provide the written notification described in new 34 CFR §300.154(d)(2)(v) to parents, including to those parents who provided consent under the previous regulations, before the public agency may access, or continue to access, the child’s or parent’s public benefits or insurance.  States also must fully implement the parental consent requirements in accordance with new 34 CFR §300.154(d)(2)(iv)(A)-(B).  See the nonregulatory guidance on how public agencies must implement this new parental consent requirement for parents who previously consented to use of their or their child’s public benefits or insurance.


I hope that your find this clarification helpful.  If you have any questions please get in touch with your OSEP State contact.





Gregory R. Corr, Ed.D.

Division Director

Monitoring and State Improvement Planning

Office of Special Education Programs

U.S. Department of Education

550 12th St. SW

Washington, DC 20202