NOTICE OF PROPOSED CHANGES ON MEDICAID COVERAGE FOR SCHOOL-BASED SERVICES IN THE REGULATIONS OF THE DEPARTMENT OF HEALTH.
| BRIEF DESCRIPTION The Department of Health proposes to change regulations on Medicaid coverage for school-based services. |
Summary of proposed changes: The Department of Health proposes to adopt regulation changes in Title 7 of the Alaska Administrative Code, dealing with Medicaid coverage for school-based services. The proposed changes are intended to implement HB344 (2024), which aligned state law with federal standards by expanding Medicaid coverage for school-based services to children without requiring an individualized education program (IEP) or a documented disability. The proposed changes include the following:
- 7 AAC 115. Medicaid Coverage; Therapies and Related Services, is proposed to be amended as follows: Repeal and readopt to
- remove the school-based services
- disability requirement and revise all related language to reflect this change;
- Individualized Education Program (IEP) requirement and revise all related language to reflect this change;
- amend school-based services to require, as a condition of coverage, that a service be provided under the student’s current treatment plan that identifies the service as medically necessary, unless an IEP exists or unless the service is an evaluation, screening, or assessment, or is a medication service; and
- remove or replace obsolete nomenclature and billing requirements that are already addressed in provider billing manuals or universal claims and coding standards;
- 7 AAC 145. Medicaid Payment Rates, is proposed to be amended as follows:
- revise the reference to the school-based services fee schedule to reflect new nomenclature.
- 7 AAC 160. Medicaid Program; General Provisions, specifically, 7 AAC 160.900. Requirements adopted by reference, is proposed to be amended as follows:
- Include the current version of a department document adopted by reference, the State Fiscal Year 2027 Fee Schedule for School-Based Services. The current version includes revised nomenclature.
Written comments: You may comment on the regulation changes, including the potential costs to private persons of complying with the changes, by submitting written comments by electronic mail to Ms. Sarah Dahlen at sarah.dahlen@alaska.gov , or by mail to State of Alaska, Department of Health, Division of Health Care Services, Attention: Sarah Dahlen, Division of Health Care Services, 4601 Business Park Blvd., Bldg. K, Anchorage, AK 99503.
Written comment deadline: The written comments must be received not later than 5:00 p.m. on November 23, 2026.
Oral hearing: You may provide oral comments relevant to the proposed action by telephone or online at the hearing to be held on November 16, 2026, as a telephone and internet-accessible Zoom meeting. You may join the Zoom meeting by using the Zoom website link or by calling the Zoom Call-in toll-free telephone number and using the Meeting ID and Passcode, as follows:
There will not be in-person attendance provided at the hearing site, so please prepare to share your oral comments by telephone only. The hearing is scheduled from 2:00 p.m. to 3:00 p.m., and priority will be given to commenters on the line before the beginning of the hearing. The hearing may be extended to accommodate those on the line before 2:30 p.m. who did not have an opportunity to comment. Before the start of the hearing, Department of Health may limit the time allotted for each person providing oral testimony, as reasonably necessary to conclude the hearing in the time provided.
Questions: You may submit written questions relevant to the proposed action to Ms. Sarah Dahlen, Department of Health, Division of Health Care Services, by electronic mail at to Ms. Sarah Dahlen at sarah.dahlen@alaska.gov , or by mail to State of Alaska, Department of Health, Division of Health Care Services, Attention: Sarah Dahlen, Division of Health Care Services, 4601 Business Park Blvd., Bldg. K, Anchorage, AK 99503. The questions must be received at least 10 days before the end of the public comment period. The Department of Health will aggregate its response to substantially similar questions and make the questions and responses available on the Alaska Online Public Notice System.
Public nature of comments and questions: Public comments and questions, once submitted, are public records and subject to disclosure under the Alaska Public Records Act. See AS 40.25.100 - 40.25.295. Do NOT include in your comments or questions any information that you do not want made public.
Accommodations: If you are a person with a disability who needs a reasonable accommodation to participate in this process, please contact Ms. Sarah Dahlen, by electronic mail at sarah.dahlen@alaska.gov , or by telephone at (907) 310-2769 not later than November 6, 2026, to ensure that any necessary accommodations can be provided.
Obtaining copies of proposed regulations: A copy of the proposed regulation changes is available on the Alaska Online Public Notice System and by contacting Ms. Sarah Dahlen, by electronic mail at sarah.dahlen@alaska.gov , or by telephone at (907) 310-2769.
A copy of material proposed for adoption by reference is available on the Alaska Online Public Notice System.
Final version of regulations: After the public comment period ends, the Department of Health will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action. The language of the final regulation may be different from that of the proposed regulation. You should comment during the time allowed if your interests could be affected.
Statutory authority: AS 47.05.010; AS 47.05.012; AS 47.07.020, AS 47.07.030; AS 47.07.040; AS 47.07.063; AS 47.07.085.
Statutes being implemented, interpreted, or made specific: AS 47.05.010; AS 47.05.012; AS 47.07.030; AS 47.07.040; AS 47.07.063; AS 47.07.085.
Fiscal information: The proposed regulation changes are not expected to require an increased appropriation.
How to receive further notices: The Department of Health, Division of Health Care Services, keeps a list of individuals and organizations interested in its regulations. Those on the list will automatically be sent a copy of all the Department of Health, Division of Health Care Services, notices of proposed regulation changes. To be added to or removed from the list, send a request to the Department of Health, Division of Health Care Services, at sarah.dahlen@alaska.gov giving your name, and either your e-mail address or mailing address, as you prefer for receiving notices.
How to receive further notices: Individuals can also signup to receive automated notifications of all State of Alaska notices, including public notice for regulation changes, by subscribing to the Alaska Online Public Notices System: https://aws.state.ak.us/OnlinePublicNotices/Default.aspx.
DATE: September 15, 2026.
/s/Heidi Hedberg
Commissioner,
Department of Health
State of Alaska.