Maryland Medical Assistance Program – Use of Reimbursement Funds by Schools

HB 689 requires Maryland elementary and secondary schools, and county school systems to use funds received from the Maryland Medical Assistance Program (Medicaid) or Maryland Children’s Health Insurance Program (CHIP) for specific purposes. Schools must allocate these funds to create additional provider positions (like school psychologists), offer paid internships for future providers, and provide retention stipends for current providers - especially in low-performing schools. The bill takes effect October 1, 2025, and mandates the Maryland Department of Education to adopt regulations for implementation. This directly affects schools receiving Medicaid/CHIP reimbursement funds for student health services.