Arkansas Department of Education Division of Elementary and Secondary Education Medicaid Implementation of the PASSE (Provider-Led Shared Savings Entity) Model

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Learning Services
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Federal Programs; Superintendents; Principals; General Business Managers

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Act 775 of 2017 created the Medicaid Provider-Led Organized Care Act, otherwise known as the PASSE (Provider-Led Shared Savings Entity). This provides a new model of care intended to support certain Medicaid beneficiaries with behavioral health and intellectual and developmental disabilities service needs. In light of the implementation of the new model of organized care, this memo is intended to provide public school personnel guidance and clarification regarding the impact related to school-based services provided by, or on behalf of, a public school district.


According to Arkansas Code Annotated §20-77-2705(b) The Medicaid provider-led organized care system shall be implemented to the extent possible, but shall not include the following services when provided to enrollable Medicaid beneficiary populations:

  1. Nonemergency Medicaid transportation in a capitated program

  2. Dental benefits in a capitated program

  3. School-based services provided by school employees

  4. Skilled nursing facility services

  5. Assisted living facility services

  6. Human development center services

  7. Waiver services provided to adults with physical disabilities through the ARChoices in Homecare program or the Arkansas IndependentChoices program


    Medicaid reimbursable services provided by a public school district employee, including all services provided as a result of a public school requirement, are excluded from the Arkansas PASSE network. Therefore, public school districts are not authorized to enter into agreement with a PASSE network for the purpose of providing school-based Medicaid reimbursable services. Under these new guidelines, Arkansas public school districts will continue to follow the fee-for-service Medicaid claiming process with the Division of Human Services (DHS), Division of Medicaid Services (DMS) MMIS system.


    Public school districts currently enrolled as a Medicaid provider are listed in the Medicaid provider enrollment system. This system has been used to distribute information regarding the PASSE. School districts have received this correspondence inadvertently, disregard this communication.


    For questions regarding information provided in this memo, please contact the Arkansas Department of Education School Health Services Office at 501-683-3604. Enclosure: Act 775 of 2017

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