Maryland Medical Assistance Program - Use of Reimbursement Funds by Schools

SB 506 requires Maryland elementary and secondary schools, as well as county school systems, to use funds received from Medicaid (Maryland Medical Assistance Program) and children's health insurance (Maryland Children’s Health Insurance Program) reimbursements for specific purposes. The bill mandates that these funds must cover additional healthcare staff positions (like school psychologists), paid internships for students training to become healthcare providers, and stipends to recruit and retain staff - especially in low-performing schools. It does not change eligibility for Medicaid or CHIP but directs how schools must spend the reimbursement funds they already receive. The law takes effect October 1, 2025.